BUZZ-Morningstar hikes fair value estimate for Aussie Broadband post service agreement

Reuters
09/08
BUZZ-Morningstar hikes fair value estimate for <a href="https://laohu8.com/S/ABB.AU">Aussie Broadband</a> post service agreement

** 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 to Commonwealth Bank of Australia-backed CBA.AX firms More Telecom and Tangerine Telecom

** Adds co to sell its Buddy Telco brand and customer assets to Tangerine

** Morningstar notes co projects A$12 million ($7.85 million) EBITDA per year from the agreement from FY27 onwards

** Investment research firm says new contribution effectively replaces the A$14 million annual EBITDA lost after the expiry of a wholesale agreement with Origin Broadband in April 2024

** Morningstar says new wholesale deal demonstrates a management team adept at refilling its wholesale pipeline

** Also expects agreement-revived wholesale earnings base will be maintained in the longer term through either renewal or replacement

** Aussie Broadband up 43.4% so far this year as of last close

($1 = 1.5281 Australian dollars)

(Reporting by Nikita Maria Jino in Bengaluru)

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

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