Australia's Superloop rises, Jefferies initiates with 'buy'

** Shares of Australia's Superloop SLC.AX rise as much as 4.6% to A$2.5, logging their biggest intraday pct gain since August 19

** Analysts at Jefferies initiate coverage of telecom co with "buy" rating and price target of A$3.6/share

** Brokerage views that SLC has underperformed within ordinaries index .AORD in last quarter as investors stay concerned about domestic competitors such as Telstra TLS.AX, Optus and foreign entrants like SpaceX's SPCX.O Starlink

** However, Smart Communities — SLC's business segment that offers direct fibre to the premises (FTTP), and owns the last-mile fibre infrastructure serving new residential developments — is viewed as a quality earner for SLC, says Jefferies

** Brokerage estimates Smart Communities can grow gross profit from A$17 million ($11.88 million) in FY26 to A$40 million by FY29

** Eight of 10 analysts rate the stock "buy" or higher and two "hold"; median PT is A$3.75, according to data compiled by LSEG

** Stock down below 4% YTD

($1 = 1.4308 Australian dollars)