Aussie Broadband Limited (ABB) – Signs an accretive network deal
September 5, 2025
Aussie Broadband telecommunications and technology services in Australia across residential, business, government, and wholesale customers. Aussie Broadband Limited was founded in 2003 and is based in Morwell in Victoria.
FY25 operating earnings from Aussie Broadband came in ahead of Ord Minnett’s expectations. Combined with a material new wholesale agreement with two challenger telcos, More Telecom and Tangerine, plus the sale of the loss-making Buddy Telco business, Ord Minnett has significantly upgraded its forecasts and valuation. Aussie Broadband’s FY26 guidance for $157–167 million in operating earnings represented a 5% upgrade at the mid-point versus our prior estimates.
The benefit of the new wholesale agreement with NBN is scheduled to be fully captured in FY27. In our view, FY25 marks a turning point in the company’s return cycle. Given improving earnings quality and rising returns on equity (ROE), our discounted cash flow-based price target rises to $5.72 per share from $4.55, although recent share price strength means we trim our recommendation to Accumulate from Buy.
Insights that count
Discover the best opportunities to outperform the market. Our research team dig deep into the market, company and stock data to bring you insights others might overlook.
ResMed (RMD) – Out of the Matrix
ResMed designs and manufactures medical devices and cloud-based software applications for the sleep apnoea and respiratory care markets.
Orora (ORA) – Bottled up
Orora designs and manufactures aluminium cans and glass bottles, principally for beer, wine and spirits, in Australia, New Zealand, the US and Europe. Orora was incorporated in 1949 and is headquartered in Hawthorn in Melbourne.
Virgin Australia Holdings (VGN) – Keeping it simple
Virgin Australia is the nation’s No.2 airline and offers domestic air services under its own brand and overseas travel via its international partners, which include Qatar Airways, Singapore Airlines, United Airlines, Air Canada, Air New Zealand, Hawaiian Airlines, and All Nippon Airways, and owns the Velocity loyalty business.
.webp)