Superloop Ltd (ASX: SLC) shares have opened 0.32% lower on Wednesday morning. At the time of writing the ASX All Ords telco stock is trading at $3.09 a piece.
The Australian telecommunications company that provides internet and mobile services for residential, business, and wholesale customers has enjoyed a strong price rally this year. It entered the ASX 200 index in September this year.
Over the past 6 months, Superloop shares have climbed 22.06%, and over the year they're 59.79% higher.
And now, in a note to investors ahead of the company's annual general meeting (AGM) tomorrow, analysts at Macquarie Group Ltd (ASX: MQG) have said what they expect from the stock next.
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Robust upside ahead for the ASX All Ords telco
The broker has confirmed its outperform rating and $3.65 target price on Superloop shares. At the time of writing that implies a potential 18.1% upside ahead for investors.
"Our A$3.65 target price implies a TSR of +21% over NTM. We note that at a NTM EV/EBITDA only +3% above its long-run average, we think current share price levels represent an attractive buying opportunity into the AGM," Macquarie analysts said.
Catalysts: A strong AGM update incl FY26 EBITDA guidance, Balance sheet deployment on value-accretive M&A/inorganic growth, Origin customer growth…..SLC's outlook remains positive, in our view – with Origin growth continuing at strong levels, and catalysts in the Consumer & Business segments. Downside risk is protected by a $30m Net Cash balance sheet (FY25).
What does the broker expect from tomorrow's AGM?
The market has forecast that Superloop will announce an estimated underlying EBITDA of $114 million for FY26. Macquarie thinks this will be more like $117 million.
This implies only +6% growth over FY26E vs the 2H25 run-rate, despite continuing customer growth & Origin adds, which we expect to have accelerated over the NBN speed changes in Sep-25 (1Q26).
"We view the [market] consensus estimate for FY26 Underlying EBITDA as a relatively accurate reflection of the market's estimates for the upcoming year," the broker said.
The ASX All Ords company has an ungeared balance sheet (FY25 Net Cash: A$30m), despite its most comparable NBN-provider peer having gearing (ABB FY25 Net Debt: A$128m).
Macquarie said that this raises the likelihood of potential M&A.
We think the company has scope to buy multiple-accretive businesses (e.g., fibre networks due to their infrastructure-like moat & earnings) that are more capitally intense, given its current lower capital intensity than ABB (FY25 Capex/Sales: -42bps vs ABB). SLC could also acquire businesses that diversify its product suite (voice products like ABB's Symbio acquisition) or further customer book bolt-ons in its Consumer division.
