Credit Suisse regards the Final Decision of the Queensland Competition Authority (QCA) to transition to a light-touch framework as a key catalyst for the company. The decision allows the transition to a negotiate /arbitrate framework with coal miners, explains the broker.
When the analyst assumes $3.11/t pricing from FY22-30, with no change to long-term forecasts, it raises the share valuation to $3.07 from $2.75. However, a more conservative approach raises the target to $2.75 from $2.50 while the Outperform rating is maintained.
Target price is $2.75.Current Price is $2.20. Difference: $0.55 – (brackets indicate current price is over target). If DBI meets the Credit Suisse target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
