AusNet’s FY21 earnings missed the broker by -15% due to an unexpected impairment of geospatial assets and higher operating expense in electricity distribution. However the focus for the broker was on FY22 guidance.
The company guided to flat FY22 distributions in order to maintain its credit rating and ahead of significant capex required for the newly acquired Mondo business from FY23. An earnings uplift from Mondo is now not expected until at least FY25.
Target falls to $1.80 from $1.90, Neutral retained.
Target price is $1.80.Current Price is $1.78. Difference: $0.02 – (brackets indicate current price is over target). If AST meets the UBS target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).