Citi analysts have turned more constructive (their words) on several aspects of the AusNet Services operational context, including lower forecast accounting tax and lower net interest expenses.
This has resulted in higher cash flow forecasts, but the price target loses one cent to $1.81 regardless. The analysts point to a lower regulatory asset base (RAB) as the key offset to explain the move.
All in all, Citi does not believe AusNet will be able to grow dividends faster than inflation for years to come and thus prefers APA Group ((APA)) instead.
Sector: Utilities.
Target price is $1.81.Current Price is $1.80. Difference: $0.01 – (brackets indicate current price is over target). If AST meets the Citi target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
