Well, that didn't take long. Just one day after we discussed Macquarie's enthusiasm ahead of the Aussie Broadband Ltd (ASX: ABB) AGM, the broker's post-AGM notes are in, and Macquarie remains bullish.
Following the AGM, Aussie Broadband shares are up 6% today, extending what is now a 68% share price appreciation so far in 2025.
So what did Macquarie make of it all?
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Macquarie's view post AGM
According to the broker's latest note, Aussie Broadband added 22,600 subscribers year to date and reaffirmed its FY26 guidance for underlying EBITDA ($157–$167 million) and capex ($55–$60 million).
That's a solid result, although Macquarie noted a touch of disappointment in the pace of residential subscriber growth for the September quarter, with the view that it was slightly below expectations.
However, the story remains overall positive. In the first two weeks of October, subscriber growth accelerated, suggesting Aussie Broadband is regaining momentum as recent NBN speed-tier changes (which came into effect mid-September) start to shake up the market.
Those changes give consumers new incentives to upgrade from 50Mbps plans and have created fertile ground for challenger brands like Aussie Broadband to win market share from Telstra Group Ltd (ASX: TLS), which still holds roughly 40% of the market share in that segment.
Macquarie believes Aussie Broadband's premium service and top-ranked customer satisfaction position it perfectly to benefit.
Is Macquarie still bullish?
The broker reiterated its outperform rating and kept its 12-month price target at $6.35. That implied a roughly 11% upside at the time the note was released, but today's share price appreciation to $6 has narrowed the gap with Macquarie's price target.
While residential growth was a little soft, Macquarie says that was more than offset by strength in other divisions, particularly Enterprise & Government, where new deals with Accor and Bakers Delight are already boosting forecasts.
It also sees upside from Aussie Broadband's wholesale partnerships (notably with More/Tangerine Telecom) and points out that the company remains under-geared with manageable debt levels, giving it flexibility for future acquisitions or potential capital returns.
Macquarie also notes that Aussie Broadband shares remain undervalued relative to their growth potential, with the share price still trading below its long-term price-to-earnings multiple compared to the broader S&P/ASX 300 Index (ASX: XKO).
Foolish Takeaway
Macquarie hasn't wavered. The broker still sees great potential in Aussie Broadband even after the AGM.
The telco's subscriber growth may ebb and flow from quarter to quarter, but the broader trend looks strong.
After today's 6% jump, investors might expect some short-term cooling, but for those willing to hold through the noise, Aussie Broadband still looks like a business with plenty of bandwidth left for growth.
