AST - Macquarie rates the stock as Outperform
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Ausnet's revenue result came in ahead of forecast but the strength does not necessarily translate into material upgrades, the broker points out. Both electricity transmission and distribution are revenue capped.
Upside to valuation would stem from the successful implementation of non-regulated transmission asset growth, the broker suggests. The opportunity is attractive given new renewable plants being commissioned. Ausnet should win its fair share and has the balance sheet to support funding.
Outperform, target rises to $1.91 from $1.82.
Target price is $1.91.Current Price is $1.85. Difference: $0.06 - (brackets indicate current price is over target). If AST meets the Macquarie target it will return approximately 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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