While the 2018 results were slightly lower than expected, 2019 distribution guidance was also softer than Deutsche Bank forecast.
Management appears to have decided to use a glide path into 2022, when cash income tax payments start, rather than continue to pay out 100%.
Deutsche Bank trims earnings forecasts and alters the distribution profile. Buy rating maintained. Target lowered to $7.75 from $8.00.
Target price is $7.75.Current Price is $7.07. Difference: $0.68 – (brackets indicate current price is over target). If SYD meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).