Aussie Broadband Ltd (ASX: ABB) is a communications company and challenger internet services provider.
The company has grown to become Australia's fifth largest provider of National Broadband Network (NBN) services, connecting more than 300,000 residential and business customers across the country.
Its share price has had a healthy year-to-date, climbing 10.45%.
As a small-cap share with a market cap of just over $1 billion, Aussie Broadband Small-cap has significant growth potential.
Let's see what one broker has behind its optimistic view of this growth stock.
Broker believes there's more growth in store
Since its ASX debut back in 2020, the share price of Aussie Broadband has more than doubled, and currently sits at $3.91 per share.
Broker Bell Potter has an overweight recommendation and target price of $4.54.
This indicates a further 16.11% upside.
According to a report from Bell Potter, the company's revenue growth is a key factor in its guidance.
Revenue for the first half of FY '25 was reported at $588 million, marking a 6.8% growth from the prior corresponding period and a 32% increase on a statutory basis. Underlying EBITDA rose by 8.9% to approximately $66 million, with gross margin improving by 7.5% to nearly $218 million.
The broker also looked favourably on Aussie Broadband's 43,652 connections added in the first half, improving its status as the Most Trusted Telco, and maintaining a growing market share in NBN services.
Aussie Broadband is looking toward 2028 with a refreshed strategy focusing on diversifying revenue, expanding the Aussie Fibre footprint, enhancing customer service, and improving digital tools and security.
What are other brokers saying about this growth stock?
It seems that Bell Potter isn't the only broker with upside views on the Aussie internet provider.
Trading View has a 12 month target price of $4.49 on this growth stock, which indicates almost 15% upside.
Online brokerage platform Selfwealth has an average price target of $4.50.
Earlier this year, UBS placed a price target of $4.80 on Aussie Broadband shares.
