First half proportional operating earnings (EBITDA) grew by 1.6%. Cash flow from APRR grew by 18% because of the exit of high-cost funding structures, although some of this was eroded by additional costs associated with internalisation.
UBS reduces forecasts for cash flow in 2020 by -6% to reflect deferral of the French tax rate reduction and removing the early refinancing of the Eiffarie level debt. Neutral rating and $7.85 target maintained.
Target price is $7.85.Current Price is $8.49. Difference: ($0.64) – (brackets indicate current price is over target). If ALX meets the UBS target it will return approximately -8% (excluding dividends, fees and charges – negative figures indicate an expected loss).