Reports that the Chinese government is seeking to imposed tariffs on Australian beef, barley and other exports signals to Credit Suisse there may be a hit to container volumes.
The broker estimates around 20% of export container volumes handled by Qube Holdings are destined for China.
Still, the broker makes no changes to estimates, suspecting the trade tensions will be temporary. Instead, the main risks to the Outperform rating stem from a deep recession and weak take-up at Moorebank. Target is $2.80.
Sector: Transportation.
Target price is $2.80.Current Price is $2.46. Difference: $0.34 – (brackets indicate current price is over target). If QUB meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
