The Australian Energy Regulator’s draft decision adds to revenue in the next 2-3 years, Macquarie observes. The broker notes Ausnet Services has avoided ambitious expenditure claims, which has meant the majority of its expenditure is accepted.
The upside comes from the development of the renewables portfolio, with government sponsoring another 600MW of renewables that create additional connection agreements. The broker retains a Neutral rating. Target is raised to $2.00 from $1.87.
Sector: Utilities.
Target price is $2.00.Current Price is $2.00. Difference: $0.00 – (brackets indicate current price is over target). If AST meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
