Rate of broadband take-up for Origin pivotal to Superloop's earnings, says Citi

Superloop

30/12/2024 21:13

** Analysts at Citi say the rate at which Australian energy retailer Origin  ORG.AX  takes
up broadband would be crucial to earnings growth in near to medium term for local internet
provider Superloop  SLC.AX  
    ** Brokerage says the key question for Superloop would be where a ceiling for Origin's
broadband penetration is
    ** Citi maintains "buy" rating on SLC, with a PT of A$2.4
    ** Expects annualised EBITDA contribution from ORG's contract to be between A$89 mln ($55.36
mln) and A$129 mln ($80.24 mln) depending on the energy firm's penetration rates
    ** Seven of eight analysts rate the stock "buy" or higher and one "sell"; their median PT is
A$2.2 – LSEG
    ** SLC has gained over 20% this year


($1 = 1.6077 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com))