Caltex proposes to sell a 49% interest in 250 freehold fuel retail sites, representing most of its freehold retail holdings. Superficially, the proposed divestment of the freehold retail sites is attractive and from an economic perspective Credit Suisse is favourably disposed to monetising the assets.
The broker upgrades near-term fuel retail and refiner margins which drive changes to forecasts. The target is raised to $28.11 from $26.85. Credit Suisse maintains a Neutral rating.
Sector: Energy.
Target price is $28.11.Current Price is $29.79. Difference: ($1.68) – (brackets indicate current price is over target). If CTX meets the Credit Suisse target it will return approximately -6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
