Morgan Stanley has increased its target price for Aurizon to $4.08 from $4, noting improvements in the underlying business, which outperformed by 10% on Transformation targets, and volume growth outpaced the market.
However, the broker is unimpressed, expecting a number of hurdles will block momentum. The broker remains Underweight. Industry view: Cautious.
Target price is $4.08.Current Price is $4.48. Difference: ($0.40) – (brackets indicate current price is over target). If AZJ meets the Morgan Stanley target it will return approximately -10% (excluding dividends, fees and charges – negative figures indicate an expected loss).