AST – Morgans rates the stock as Hold

By Broker News | More Articles by Broker News

Earnings lifted in the second half of FY19 and beat Morgans’ forecast. Excluding customer contributions, operating earnings (EBITDA) were flat but still exceeded forecasts by 4%. Distribution guidance of 10.2c per security for FY20 implies 5% growth on a cash yield of 5.6%.

While not willing to commit to sustaining this level of distributions through the next regulatory re-set, the company indicated it had good visibility on earnings, amid traction on its cost reduction program and a growing unregulated investment pipeline.

Morgans maintains a Hold rating and raises the target to $1.74 from $1.73.

Sector: Utilities.

Target price is $1.74.Current Price is $1.83. Difference: ($0.09) – (brackets indicate current price is over target). If AST meets the Morgans target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).


Broker News

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →