Australia telcos sink to 15-month low; Citi says Telstra earnings upside outweighs SpaceX woes

Telstra

12/10/2026 05:59

Updates
** Telcos .AXTJ slip as much as 2.4%, hitting their lowest since July 2024, with heavyweight names Telstra TLS.AX, Superloop SLC.AX and Aussie Broadband ABB.AX pacing losses 
** Citi says TLS remains rated "buy" as upside to FY2027 earnings guidance outweighs concerns over SpaceX SPCX.O acquiring a US portfolio of low-band spectrum licences
** Brokerage says September was stronger for flagship brands, with MyTelstra app downloads rising 10% month-on-month and the annual decline narrowing
** Citi says app downloads and Telstra branded postpaid and consumer net additions show a "reasonable correlation" factor of 0.67
** Adds, challenger broadband provider SLC shows upside to consensus subscriber growth forecasts, calling recent share weakness a buying opportunity
     ** Citi remains "neutral" on ABB, though app downloads up 37% YoY in 1Q suggest residential broadband growth could beat forecasts
** AXTJ has fallen 13.6% so far this year, lagging TLS's 4.4% decline and SLC's 5% drop, while outperforming ABB's 18.7% fall

 (Reporting by Roshan Thomas and Kumar Tanishk in Bengaluru; Editing by Susan Fenton)
 ((Roshan.Thomas@thomsonreuters.com;))