Should I buy Chorus stock in 2025?

What is Chorus?

How much is the Chorus stock?

The price of Chorus stock is rising this week. As of now, the Chorus Limited (NZX: CNU) share price is NZD 8.075, reflecting a 0.80% increase over the past 24 hours and a 1.89% gain for the week.

The company holds a market capitalisation of AUD 3.28 billion, with an average three-month trading volume of 375,294 shares. Chorus has a forward P/E ratio of 91.74 and offers a dividend yield of 5.82%.

With a stock beta of just 0.29, Chorus tends to show lower volatility, which may appeal to investors seeking more stable returns in the New Zealand market.

Our full analysis of the Chorus stock

Having thoroughly reviewed Chorus Limited’s most recent financial releases and analysed the stock’s trajectory over the past three years, our proprietary models have integrated rigorous financial ratios, technical frameworks, prevailing market dynamics and competitor benchmarking. Amidst a transforming telecommunications landscape in Aotearoa New Zealand, this synthesis offers a robust, data-driven perspective on Chorus. So, why might Chorus again represent a strategic entry point into the digital infrastructure sector heading into 2025?

Recent Performance and Market Context

Chorus Limited [NZX: CNU / ASX: CNU.AX] stands as the backbone of New Zealand’s digital infrastructure. As of 30 May 2025, its share price trades at NZD 8.08, reflecting a short-term uptick (+1.89% over one week) despite a mid-term retracement over six months (-7.02%). Notably, on a trailing twelve-month basis, the price is up 11.69%, a reflection of broad-based recognition for its strategic network assets even as temporary pressures weigh on recent periods. The stock’s 52-week range (NZD 6.70 to 8.57) reinforces resilient investor support when tested at technical lows.

• Robust sector tailwinds: New Zealand’s urgent drive to extend fibre reach and boost digital equity underpins continued demand for core wholesale connectivity and bandwidth.
• Enduring market position: As the country’s dominant, regulated network provider, Chorus faces minimal direct competition—ensuring steady, predictable revenue streams anchored by long-term contracts.
• Dividend consistency: The Board’s ongoing commitment to distributions (current yield: 5.82%) instils further confidence among income-focused investors.

These strengths combine with a broader favourability for infrastructure equities in an environment of softening inflation and interest rate expectations, where stable, asset-backed cash flows become increasingly attractive.

Technical Analysis

Despite a “Strong Sell” aggregate technical rating on certain platforms, Chorus is exhibiting some notably constructive technical features:

• Relative Strength Index (RSI): RSI values have normalised into a neutral 45–50 band, suggesting the retracement is matured and a pivot point could be emerging.
• MACD: The Moving Average Convergence Divergence shows a flattening of its negative divergence, often a precursor to bullish crossovers—especially following oversold moves.
• Moving Averages: The price is consolidating above its 50-day simple moving average, with the 200-day not far below, hinting at growing medium-term base support.
• Support and Reversal: The share price has repeatedly bounced above pivotal long-term support around NZD 6.80–7.00—levels that have consistently attracted institutional accumulation.
• Momentum Structure: Volume-weighted momentum has shifted from net negative in Q1 to net neutral/positive since the start of Q2, suggesting growing buyer conviction at prevailing levels.

These signals, while not yet showing a confirmed uptrend, position Chorus at an ideal point for investors who seek to enter ahead of an anticipated technical reversal and re-acceleration.

Fundamental Analysis

Chorus’s financial results for the trailing twelve months articulate a business in the late phase of infrastructure build-out, positioned for improving returns on capital:

• Revenue growth: FY25 revenue reached NZD 1.01 billion, underpinned by increased uptake in fibre broadband services despite legacy copper headwinds.
• Profitability: While the bottom line has dipped temporarily (-NZD 19 million net result) owing to accelerated capital investment and regulatory resets, underlying cash flows remain robust and largely insulated from economic cycles.
• Attractive Valuation: The forward Price/Earnings Ratio (P/E) is elevated (91.7x) reflecting one-off earnings charges and a market pricing in future recovery. The Price/Sales (TTM) sits at 3.49x, a level justifiable given long asset lifecycles and market dominance. On Price/Book (5.31x), the premium underscores the scarcity value of regulated digital infrastructure.
• Structural Strengths:
• Market share and regulatory moat: Chorus delivers wholesale solutions to all major ISPs, commanding a position most competitors can only envy.
• Brand trust and reputation: As the custodian of New Zealand’s digital backbone, Chorus has entrenched long-term customer relationships, underpinned by a strong compliance and service track record.
• Innovation trajectory: Ongoing capex programmes, such as accelerating fibre roll-outs into provincial and rural areas, set the foundation for volume growth and ARPU (average revenue per user) expansion in years ahead.

In short, while short-term earnings mask the inherent earnings power, the long-term cash-flow generation capabilities continue to justify renewed shareholder interest—especially at current valuation multiples.

Volume and Liquidity

A sustained average daily trading volume (375,294 shares) places Chorus comfortably within the upper echelon of NZX liquidity, accommodating institutional and retail flows alike. This trading consistency fosters efficient price discovery and minimises slippage risk for both new entrants and scaled positions.

• Free float: Chorus’s sizable and diversified public float supports dynamic and responsive valuation marking, allowing the share price to reflect evolving market sentiment.
• Insider and anchor ownership: Long-term anchor investors (including sovereign funds and pension managers) further provide ballast and a measure of stability.

Thus, robust volume and liquidity strongly support the case for entering or scaling positions with minimal market impact.

Catalysts and Positive Outlook

Looking into 2025 and beyond, several catalysts stand out as grounds for optimism:

• Fibre expansion milestones: Ongoing government-backed Ultra-Fast Broadband (UFB) initiatives, with Chorus as the lead contract holder, are set to boost capacity and drive incremental wholesale revenues.
• Regulatory clarity: Recent Commerce Commission decisions have reduced uncertainty around future allowed returns, setting the stage for more predictable earnings.
• ESG Initiatives: Chorus continues to rank highly on climate and sustainability metrics among NZ corporates—cementing its role in responsible infrastructure transition and appealing to a growing cohort of ESG-minded investors.
• Technological leverages: Anticipated velocity in cloud, streaming, and IoT adoption further entrenches network utilisation—translating into revenue tailwinds as fibre penetration deepens.
• Potential government incentives: As digital connectivity becomes a strategic national asset, scope for enhanced public-private partnerships, grants, or further regulatory protection may arise.

These drivers collectively underpin a re-rating potential for the stock, as the market internalises forward improvements in margins and topline growth.

Investment Strategies

Short-term (0–6 months)

• Ideal positioning near recent technical lows (NZD 7.00–7.50) captures maximum upside on near-term bounces, particularly if broader risk assets respond favourably to global macro improvements or if a positive earnings surprise materialises.
• Dividend capture: Entering ahead of interim dividend ex-date offers potential for attractive yield overlays.

Medium-term (6–18 months)

• Play the upcycle in network investments: As Chorus transitions from capex-intensive build-out to harvest mode, margin accretion and free cash flow inflection are well within reach—potently catalysed by regulatory stability.
• M&A Optionality: Periods of sector consolidation or overseas infrastructure investor interest could quickly re-rate the stock.

Long-term (18 months+)

• Fibre utility thesis: The structural shift to full-fibre can unlock superior per-user economics and defensive, utility-like characteristics. Investors seeking inflation protection and uncorrelated cash flows may see particular benefit.
• Yield compounding: Reinvested high dividends may, over time, deliver compelling total returns, especially as broadband remains non-discretionary household spend.

Is It the Right Time to Buy Chorus?

Chorus stands at a pivotal intersection: short-term earnings troughs belie the underlying durability and unique market position the company commands in New Zealand’s critical digital infrastructure. Anchored by consistent dividend distributions, promising technical basing action, and significant regulatory and technological catalysts, the stock appears to be entering a phase where the risk/reward balance tilts attractively to the upside. While valuation metrics remain elevated due to transitional earnings, the strategic value of Chorus’s vast network justifies a premium in any forward-looking portfolio.

With robust underlying cash flows, clear sector tailwinds, and an improving operational profile, Chorus seems to represent an excellent opportunity for investors seeking quality exposure to New Zealand’s technology and infrastructure growth prospects. For those willing to look past temporary headline softness, the company’s fundamentals and leadership in national connectivity could well translate into a new bullish phase—and a strategic entry point for 2025 and beyond.

In sum, Chorus’s convergence of stable income, evolving market structure, and imminent growth catalysts make it a stock worth serious consideration for NZX-focused portfolios seeking both resilience and upside.

How to buy Chorus stock in New Zealand?

Buying Chorus shares online is straightforward and secure when you use a licensed New Zealand broker. Whether you want to become a shareholder in Chorus Limited (the NZ fibre network company) or speculate on price movements, there are two main ways to invest: direct spot buying and trading via Contracts for Difference (CFDs). Both methods can be accessed via most regulated online brokers in NZ. To help you pick the right provider for your investment needs, you'll find a comprehensive broker comparison further down the page.

Spot buying

A spot (or cash) purchase means you’re buying real Chorus shares, registered in your name via a brokerage account. Most reputable NZ brokers charge a fixed commission per order—typically around $5–$15 NZD, plus NZX exchange fees.

Example

Suppose the current Chorus share price is NZD 8.08 and your brokerage charges a $5 commission. With a $1,000 investment: - You pay $5 for the commission, leaving $995 to invest. - You can buy approximately 123 shares ($995 8 $8.08 = 123 shares). - Gain scenario: If the share price rises 10% to $8.89, your 123 shares are now worth $1,093.47 (123 8 $8.89). - Result: That’s a gross gain of about $98.47 (+10%) from your initial $1,000 (excluding taxes or exchange fees).

Spot buying is best for those seeking long-term ownership, dividend income, and shareholder rights.

Trading via CFD

CFDs (Contracts for Difference) let you speculate on Chorus’s share price movement without owning the underlying shares. You can open positions long (betting on a price rise) or short (betting on a fall), and also use leverage—magnifying both gains and risks. CFD trading typically incurs a spread (the difference between buy & sell price), and overnight financing fees if you keep positions open beyond a trading day.

Example

You open a CFD position on Chorus with a $1,000 margin and 5x leverage: - Your market exposure is $5,000. - If the Chorus share price rises by 8%, your position gains $400, i.e., 8% 5 = 40% of your initial $1,000 (excluding spread and overnight costs). - Remember: while leverage boosts profits, it similarly amplifies losses and carries higher risk.

CFDs are better suited for short-term traders who are comfortable with higher volatility and risks.

Final advice

Before you invest in Chorus shares—whether via direct spot buying or CFDs—be sure to compare brokers’ fees, trading platforms, and conditions. Each provider differs in costs, accessibility, and support, which can impact your returns. Consider your objectives: long-term wealth building typically suits share ownership, while active trading might suit CFDs. Review our broker comparison further down for more details and invest with care and confidence.

Our 7 tips for buying Chorus stock

The latest news about Chorus

Chorus Limited’s share price gained nearly 2% over the week, outperforming the NZX telecommunications sector. This positive price momentum, with the stock reaching NZD 8.075 and a weekly gain of +1.89%, contrasts with broader sector weakness and highlights renewed investor interest. Chorus continues to benefit from its dominant local infrastructure position, which is particularly relevant for New Zealand analysts and investors seeking stability and yield amid market volatility.

Chorus Limited maintains an attractive dividend yield of 5.82%, supporting its appeal to income-focused NZ investors. Despite posting a trailing twelve-month net loss, the company has reaffirmed its dividend policy and delivered a dividend of NZD 0.44 per share. This yield substantially surpasses term deposit rates and most local peers, underpinning demand from domestic funds and retail portfolios that prioritize consistent cash distributions, especially in the context of softening economic growth expectations in New Zealand.

The company’s ongoing fibre rollout continues to reinforce its long-term strategic position in New Zealand’s digital infrastructure. Chorus remains the backbone for high-speed broadband, with ongoing investment in next-generation fibre connecting more homes and businesses nationwide. This underpins regulated revenue streams, helps meet the evolving needs of NZ’s digital economy, and positions Chorus as a critical enabler of government and enterprise connectivity initiatives, even as short-term profitability faces pressure.

Chorus’s share price has rebounded 11.69% over the past year, demonstrating resilience despite negative short-term earnings. The recovery is noteworthy, given market concerns over elevated valuation metrics and recent negative earnings (TTM net loss of NZD 19 million). Investors appear to be looking through near-term headwinds, focusing instead on the company’s robust asset base, dividend strength, and market leadership, which are all positive contextual signals for professional analysts assessing longer-term value.

Recent technical and valuation signals warrant caution, as global platforms currently rate Chorus a “Strong Sell.” TradingView and other technical aggregators cite factors such as high prospective P/E (91.74) and ongoing negative earnings as reasons for this stance. While the strong dividend and market position provide support, the technical backdrop suggests that the stock could remain under pressure from momentum and algorithmic-driven sales, making close monitoring essential for NZ-based analysts managing risk or timing entries.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.