First-half results were broadly in line with expectations. International passengers comprised 38% and contributed 70% of revenue. Net operating receipts increased by 5%.
This did not cover the first half distribution of 19.5c per security but the 2019 distribution is expected to be fully covered. Morgans was pleased with the strengthening of credit metrics. Add rating maintained. Target is steady at $8.71.
Target price is $8.71.Current Price is $8.14. Difference: $0.57 – (brackets indicate current price is over target). If SYD meets the Morgans target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).