2018 results were consistent with Deutsche Bank’s forecasts. Management has reaffirmed distribution guidance for 2019 of at least 15.0c per share.
The broker observes an ongoing level of uncertainty regarding a decision on whether to appeal a recent adverse tax ruling. Upcoming regulatory re-sets also add to uncertainty.
Nevertheless, a 6.3% cash yield is expected to support the share price over the short-medium term. The broker maintains a Hold rating and $2.15 target.
Target price is $2.15.Current Price is $2.31. Difference: ($0.16) – (brackets indicate current price is over target). If SKI meets the Deutsche Bank target it will return approximately -7% (excluding dividends, fees and charges – negative figures indicate an expected loss).