Superloop Ltd (ASX: SLC) shares have been on the ASX for over a decade now. But it's really been the past 18 months or so that this ASX telco has had a fire under it.
Back in December 2023, Superloop was going for just 65 cents a share. Today, those same shares will cost an investor $3.04 each, up a whopping 370% or so.
As it happens, Superloop shares have had a stunning start to the trading week this Monday. The company initially jumped as high as 7% this morning to a new all-time high of $3.20 a share.
As we covered at the time, this was thanks to some revised earnings guidance. The company now expects underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) for FY2025 to come in at least $91 million. That's up from the previous guidance of between $83 million and $88 million.
One ASX broker reckons $3.20 a share is just the start of Superloop shares' potential, though.
That ASX broker is none other than Macquarie. In a note to clients, Macquarie has initiated coverage of Superloop stock with an 'outperform' rating. It has given the company a share price target of $3.25 a share. This, if reached, would exceed the fresh record that was set this morning.
Macquarie rates Superloop shares as a buy
Macquarie argues that Superloop offers "compelling long-term earnings growth, and a diversified product offering and business model".
The broker acknowledges that Superloop might look expensive at the current share price. That's given the company trades with a market capitalisation of over $1.5 billion, yet made an underlying loss before tax of $23.2 million in FY2024.
However, Macquarie reckons Superloop is growing so healthily that it will swing to an underlying profit before tax of $4.5 million in FY2025, expanding to $33.7 million in FY2026 and $56.6 million by FY2027.
The broker is building this positive thesis on an expected benefit from "upcoming customer churn events in the Consumer NBN market". This is expected to benefit Superloop's wholesale 'white label' business particularly well, as well as providing for growing market share for high-speed internet users.
Macquarie also points to Superloop's $11 million in net cash on its balance sheet in the first half of FY2025 as "allowing scope for capital returns or acquisitions" as a further arrow in Superloop's quiver.
No doubt Superloop investors will be pleased to hear it. Let's see how this ASX high-flyer fares over the rest of 2025 and beyond.
