Stock of the day: how Superloop outperformed market predictions
Superloop (ASX: SLC) adds over 79,000 customers in FY24, exceeding earnings expectations, and secures significant contracts with Origin and AGL. Analysts provide mixed views on whether to take profits or hold.
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Stock of the day: Superloop (ASX: SLC)
Superloop surpasses earnings guidance
In today's market roundup, the spotlight is on Superloop (ASX: SLC), a stock that's been garnering attention with its promising performance. Superloop has just announced an impressive trading update, revealing the addition of over 45,000 new customers in the second half of FY24, complementing the 34,100 added in the first half through acquisitions. The company's underlying earnings are now expected to exceed the $53 million guidance range.
Strategic moves and market impact
Superloop's strategic wins, including lucrative contracts with Origin and AGL, have been pivotal in their market share expansion. The stock has rebounded significantly, now trading above pre-COVID levels, reflecting investor optimism. According to market analysts, this growth is reminiscent of Megaport, another former market darling that faced challenges before recovering.
Outlook
With a threefold increase in value this year, Superloop continues to attract attention despite some analysts’ conservative stance. The company's strong market position and ongoing strategic initiatives make it a significant player to watch. Superloop's latest trading update underscores its recovery and growth potential, but investors should approach with caution, keeping an eye on market developments and strategic moves.
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