Credit Suisse initiates coverage on Dalrymple Bay Infrastructure with an Outperform rating and a target price of $2.50.
According to the broker’s analysis, Dalrymple Bay Infrastructure is a low-risk infrastructure business that is likely moving to a “lighter touch” regulatory structure which may lead to higher financial returns.
Further, the Dalrymple Bay Terminal (DBT) is the largest met coal terminal in Queensland with low revenue risk due to take-or-pay contracts until June 2028.
Lastly, the broker points out Dalrymple Bay Infrastructure has low operating risk since terminal operations are handled by a company owned by customers with straight revenue/cost pass-through.
Target price is $2.50.Current Price is $2.07. Difference: $0.43 – (brackets indicate current price is over target). If DBI meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).