UBS raises Superloop stock price target to AUD3.80 on Smart Communities potential

Published 02/07/2025, 13:36
UBS raises Superloop stock price target to AUD3.80 on Smart Communities potential

Investing.com - UBS raised its price target on Superloop Ltd (ASX:SLC) to AUD3.80 from AUD2.55 while maintaining a Buy rating, citing significant growth potential in the company’s Smart Communities business.

The investment bank’s analysis suggests that the Smart Communities segment could be worth approximately AUD510 million, or AUD1.00 per share, representing a substantial valuation component that appears underrepresented in current consensus forecasts.

UBS modeling indicates potential upside of 15% to the FY27/28 Business segment Gross Profit and an additional 30% Group valuation upside driven by the Smart Communities business.

Despite identifying this growth opportunity, UBS has not incorporated Smart Communities earnings into its base forecasts due to challenges in determining exact timing of revenue recognition.

The price target increase to AUD3.80 is supported by a discounted cash flow (DCF) analysis that factors in the Smart Communities business potential, representing a significant 49% increase from the previous target of AUD2.55.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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