Aussie Broadband's (ASX:ABB) recent deals with AGL Energy (ASX:AGL) and More Telecom are viewed by investors as endorsements of its marketing capability, operational strength, and scale, said Jefferies in a Wednesday note.

The company on Wednesday said it will acquire the telecommunications business of AGL Energy (ASX:AGL), in a deal valued at AU$115 million, in a bid to expand its market size.

"Whilst there are lingering concerns of a more competitive [Telstra] (ASX:TLS), we're sanguine on the prospects of TLS repricing its back book," the note said.

Jefferis maintained a buy rating on Aussie Broadband and increased its price target to AU$6.40 from AU$6.