Morgans believes Infigen Energy’s approach to delivering energy to customers is the future of the National Electricity Market and remains confident the company can grow retail volumes and earnings in the face of declining carbon prices.
The recent acquisition of gas-fired generation allows the company to hedge future retail growth more cheaply and with greater flexibility than the derivatives market. The broker reinstates coverage with a Hold rating and $0.64 target.
Target price is $0.64.Current Price is $0.65. Difference: ($0.01) – (brackets indicate current price is over target). If IFN meets the Morgans target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).