As a result of volume weakness in the June quarter Morgans expects FY20 earnings (EBIT) at the lower end of the $880-930m guidance range.
The broker continues to find the forecast dividend yield of 5.9% appealing, as is the relative revenue resilience and the potential for further buybacks.
Add maintained. Target is reduced to $5.27 from $5.46. Aurizon will report its FY20 result on August 10.
Target price is $5.27.Current Price is $4.63. Difference: $0.64 – (brackets indicate current price is over target). If AZJ meets the Morgans target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).