Morgans assesses Ausnet was a beneficiary of an improved regulated revenue outcome under the Final Decision for its Electricity Distribution business. The Hold rating is unchanged and the target price is decreased to $1.82 from $1.86.
The Australian Energy Regulator has allowed for flat revenue in the first regulatory year, declining by -1.7% pa across the following four years. On the flipside, there was no tax allowance, mainly as a result of some accelerated capex tax expensing.
Target price is $1.82.Current Price is $1.90. Difference: ($0.08) – (brackets indicate current price is over target). If AST meets the Morgans target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).