Aussie Broadband (ASX:ABB) is expected to translate subscriber growth from both organic and acquisition sources into sustained margin expansion in line with 2028 targets, according to a Monday Jefferies note.

Jefferies noted that Aussie Broadband completed its acquisition of the AGL customer base, with subscriber migration expected to finish in the second quarter of fiscal year 2027, while customers from the More and Tangerine deals are expected to migrate by the end of June, although at around 95% of previous estimates.

Organic subscriber growth to May was slightly below Jefferies' expected run rate for the second half of the year, the note added.

Jefferies kept a buy rating on Aussie Broadband with a price target of AU$6.20.