CNU – UBS rates the stock as Sell

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.



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