Morgans updates modelling for realised second half revenues and movement in forward wholesale power prices. This has resulted in a -15-38% decline in operating earnings forecasts across FY20-23.
Whether the stock price drops to valuation partly depends on the actions of Brookfield, which has purchased 9% of the stock, although Morgans notes the stake is considered strategic and the company has no intention of making a takeover bid. Reduce retained. Target is lowered to $0.35 from $0.51.
Target price is $0.35.Current Price is $0.62. Difference: ($0.27) – (brackets indicate current price is over target). If IFN meets the Morgans target it will return approximately -77% (excluding dividends, fees and charges – negative figures indicate an expected loss).