HOT stock: Superloop (SLC)

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Superloop is an Australian-based telco founded by Bevan Slattery in 2014, when Slattery spun off the infrastructure assets from his Megaport business. It was listed on the ASX in June 2015.

“We have long spruiked SLC’s fixed cost leverage as one of the key investment appeals,” Raymond said.

“Today’s upgrade validates this view.

“We upgrade our earning per share (EPSA) and free cash flow (FCF) forecasts by approximately 150% in financial year 2025.

“Earlier this year, the SLC board rejected an approx. 95 cents bid from ABB as undervaluing the business.

“Given the update today, we can see why.

“The benefits of nearly four years of hard work by management are finally starting to bear fruit operationally, with financial year earnings before interest, tax, debt, and amortisation (EBITDA) +65% year-on-year to $86 million and financial year 2025 free cash flow (FCF) +500% year-on-year to approx. $45 million.

“The fundamentals have improved substantially over the last four years, however it’s only in the last three months that the share price has, finally, acknowledged this.

“We retain our ADD and upgrade our target price approx. 35% to $1.50,” Raymond said.

Superloop (SLC)

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