Is it possible for Aussie Broadband shares to experience another bullish period?

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Aussie Broadband Ltd (ASX: ABB), a new telecommunications company, quickly gained popularity among investors when it first appeared on the ASX in October 2020.

Actually, the value of the shares increased three times from the final price on the initial day until twelve months prior.

However, in the past year, the company's stocks have lost their popularity and esteem as their share value has decreased by almost half.

What's going on right now? Is the drop going to continue indefinitely, or is it a good investment for potential future growth?

"Focus on the Backroom: Where the Real Action Happens Behind the Scenes"

According to a certain collective of financial experts called the QVG Capital analysts, shareholders of Aussie Broadband have reason to believe that the company's fortunes will improve.

However, the justification is not what you might anticipate.

Aussie Broadband is widely recognized as a provider of NBN services, although it is an activity that generates low profits and has fierce competition.

The latest memo sent to QVG clients states that the particular unit is not a profitable business and does not have an appealing outlook.

The memo stated that what draws us to Australia is the fact that they have been putting resources into their own fibre backhaul and have been expanding their operations and government sector.

Companies and public sector customers usually have a lesser turnover and earn more on average. Moreover, the profit margins for on-net fibre can be triple that of reselling the National Broadband Network (NBN).

According to the analysts at QVG, it is believed that when the market becomes aware of this, the shares of Aussie Broadband could experience a significant increase.

We think that Aussie's company might go through a re-rating because they're shifting their earnings and revenue towards the better quality government and business division.

Therefore, QVG has given their affirmative response.

Mark Devcich, the manager of Discovery Fund's portfolio, revealed in an interview with The Motley Fool that he intends to invest in Aussie Broadband.

The decrease in the value of the shares is not really because of problems with carrying out plans. It's rather a result of devaluing.

Devcich is pleased with the changing economics of NBN as it is highly probable for wholesale prices to decrease for Aussie Broadband in the future.

"You might have come across the news that the NBN decreased the net worth of the network by $31 billion, which was caused by modifications in the fees imposed on the retail service providers," he informed.

"When these modifications are implemented by July 1st, as anticipated, there will likely be a significant increase in profit margins."

Most NBN retailers will receive advantages, but high-quality supplier Aussie will receive higher rewards compared to low-cost brands.

According to Devcich, Aussie Broadband stands to gain more advantages compared to a regular telecommunications company due to their provision of plans with elevated speeds and usage limits.

"We think that the advantages of the shift in NBN pricing for the upcoming 2024 fiscal year are not being accurately considered in the consensus."

Discovery Fund appears to be signaling its support for another bullish market trend.