Credit Suisse raises its target price for Atlas Arteria to $8.60 from $7.10 after media reports that IFM Investors is seeking to increase its shareholding to 15% from 7.94% at an $8.10 offer price. The suitor intends to seek access for due diligence for a full bid.
The broker applies a 10% control premium to its underlying valuation to arrive at an $8.60 target price, up from $7.10. The raised target also factors in higher earnings and dividends related to increasing tolls on the APPR network.
Sector: Transportation.
Target price is $8.60.Current Price is $7.10. Difference: $1.50 – (brackets indicate current price is over target). If ALX meets the Credit Suisse target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
