UBS maintains a Sell rating and NZ$7.00 target price and believes a lower than expected regulated asset base (RAB) and increasing wireless broadband competition pose a threat to medium-term dividends, which could be below 50cps.
The initial RAB estimate is $5.5bn or around -10% below the UBS forecast due to circa 50 basis points higher risk free rates, lower
estimates of shared assets ($200m versus UBS $275m) and higher capital contributions.
Sector: Telecommunication Services.
Current Price is $6.71. Target price not assessed.
