Morningstar hikes fair value estimate for Aussie Broadband post service agreement

Aussie Broadband

08/09/2025 06:05

Updates

** Morningstar lifts fair value estimate on Aussie Broadband ABB.AX by 6% to A$5.2

** Internet services provider in late August said co to offer wholesale broadband network services and sell certain assets to Commonwealth Bank of Australia-backed CBA.AX firms More Telecom and Tangerine Telecom

** Morningstar notes co sees deal accruing A$12 mln ($7.85 mln) in annual EBITDA from FY27 onwards

** Analysts say new contribution replaces the A$14 mln lost in annual EBITDA after co's wholesale agreement with Origin Broadband expired

** Expects revived wholesale earnings base to be maintained in the longer term via either renewal or replacement

** Stock last down 0.5% at A$5.075; YTD up 42.7%

($1 = 1.5281 Australian dollars)

 (Reporting by Nikita Maria Jino and Shruti Agarwal in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))