Citi increases estimates for FY20 earnings (EBIT) by 1% and FY21 by 5% to reflect the company’s deal with network customers.
The regulated asset base multiple on the network is increased and the discounts for the above rail division are lowered, following the improved earnings and industry outlook.
Neutral rating maintained. Target is raised to $5.60 from $4.40.
Sector: Transportation.
Target price is $5.60.Current Price is $5.44. Difference: $0.16 – (brackets indicate current price is over target). If AZJ meets the Citi target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
