Up 30% this year, how much further upside does Macquarie predict for Superloop shares?

Are Superloop shares a buy, hold, or sell?

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Key points

  • Superloop shares have surged nearly 50% in the past year, outperforming the ASX 200 Communication Services Index, despite a recent 3% drop in share price.
  • The company's FY25 results showed significant growth with a 31% revenue increase.
  • Macquarie gives Superloop an outperform rating with a $3.55 price target, suggesting a 25.89% upside.

Superloop Ltd (ASX: SLC) shares have risen an impressive 30% so far in 2025. 

In the last 12 months, its share price is up nearly 50%. 

This has far outpaced the S&P/ASX 200 Communication Services Index (ASX: XTJ), which is up roughly 9% in that same period. 

However, today, Superloop shares have opened by losing more than 3%.

Superloop is an Australian-based telecommunications company that provides connectivity and internet services. 

Despite already rising significantly in 2025, the team at Macquarie has an outperform on Superloop shares and an attractive price target. 

Here's the latest guidance out of the broker. 

Earnings and growth on track

Superloop held its AGM yesterday

The company reported for FY25

  • Revenue jumped by 31% to $547 million
  • Underlying EBITDA rose 70% to $92.2 million
  • Net profit after tax positive for the first time since 2020
  • Total customer numbers increased 60% to 731,000
  • Further market recognition: entered S&P/ASX 200 Index (ASX: XJO) and won multiple industry awards

The team at Macquarie said that EBITDA guide was -1% below VA consensus and overall was relatively in line with guidance. 

In its AGM, Superloop also announced that the acquisition of Frontier Networks was completed on 31 October 2025 for $11.5m. It adds 10,500 lots with 4,700 completed and 5,800 lots under construction. 

Macquarie highlighted this as a positive long-term move in its report. 

Today's Frontier acquisition (11k FTTP lots), and organic growth in Smart Communities (YTD: 5k PBSA, 5k FTTP lots) increases the potential (high-multiple) earnings upside by +21% – albeit on a 3-5 year view.

Price target upside for Superloop shares

Based on this guidance, the team at Macquarie has an outperform rating and price target of $3.55 on Superloop shares. 

Based on today's opening price of $2.82, this indicates an upside of 25.89%. 

SLC's outlook remains positive, in our view. We see an opportunity from SLC trading at 18.6x EV/EBITDA after today's shareprice response. This represents a -2% discount to its LR ave. (19x), despite tailwinds to multiple-accretion (particularly Smart Communities).

Elsewhere, TradingView has a 12-month price target of $3.45, which indicates more than 22% upside.

Online brokerage platform Selfwealth lists Superloop shares as undervalued by approximately 17%.

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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