To reflect Dalrymple Bay infrastructure’s recent bond issue and Morgans updated interest and inflation rate assumptions, the broker’s target falls to $2.36 from $2.49. For investors comfortable with coal exposure the appeal is thought to be an attractive yield and earnings growth.
The analyst considers the final report by the Queensland Competition Authority (QCA) improves the infrastructure company’s negotiating position with its customers. The Add rating is unchanged.
Target price is $2.36.Current Price is $2.12. Difference: $0.24 – (brackets indicate current price is over target). If DBI meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
