Is Aussie Broadband (ABB) oversold?
THOUGHTS ON ABB. HAVE THEY BEEN OVER SOLD. ? Regards John
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Answer
Hi John,
The simple answer is yes, and we wrote about ABB on the day they were sold off after they provided FY25 guidance that was below consensus. It is worth noting that ABB typically guides conservatively, and we do believe the stock is oversold and representing good value ~$3. While it’s been a more challenging period for them no doubt, one of the things that has always impressed us about Aussie is Phil Britts decision making. He doesn’t make decisions to appease markets for the short term, his decisions are generally value accretive in the medium term, and we believe Buddy will be no different. If we had a smaller weighting (current 6%), we would have increased our position.
- MM is long and cautiously bullish ABB which we hold in our Emerging Companies Portfolio.
