Gold prices near 3-week lows as stronger dollar, trade progress weigh
Citi raised its price target on Superloop Ltd (ASX:SLC) to AUD3.35 from AUD2.65 on Wednesday, while maintaining a Buy rating on the Australian telecommunications company.
The price target increase reflects Citi’s positive outlook on Superloop’s potential for accelerated customer additions in the second half of the year, which could lead to "progressive upgrades" for the company.
Citi noted that Superloop has implemented price increases ahead of NBN wholesale price changes, with the firm’s analysis showing that Superloop’s price hikes exceed the upcoming NBN uplift on a weighted average basis.
Early indicators appear favorable for Superloop, with customer churn rates trending lower following the price increase announcement compared to previous periods, despite coinciding with end-of-financial-year promotions.
The research firm identified multiple growth catalysts for Superloop, including its Smart Communities initiative and balance sheet flexibility that provides "optionality to chase inorganic growth," factors that contributed to Citi’s higher valuation multiple.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.