From FY20 to FY23, revenue at Superloop has grown to $330m from $107m and earnings (EBITDA) to $35m from $13.5m, thereby reaching management's aspirational targets slightly ahead of time. 

As fundamentals are improving, Morgans suggests the share price should follow. Should the new target (set at the company's investor day) be achieved, the analyst believes Superloop's valuation should more than double.

This view assumes the stock trades on an around 3.5% free cash flow yield.

The new three-year plan implies the company will generate around $40m of free cash flow by FY26.

The Add rating and $1.06 target are unchanged.

Sector: Telecommunication Services.

Target price is $1.06.Current Price is $0.68. Difference: $0.38 - (brackets indicate current price is over target). If SLC meets the Morgans target it will return approximately 36% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2023 Acquisdata Pty Ltd., source FN Arena