Citi notes all key exposures in Qube Holdings’ diversified portfolio have tailwinds that are likely to remain through FY22. Thus, earnings forecasts for FY22 are upgraded by 4% though there’s some caution, given recent lockdowns and ongoing MUA negotiations.
Overall, the broker sees potential upside risk over the medium term and lifts the target price to $3.61 from $3.57. The Buy rating is maintained. There are considered strong lead indicators for mining, agricultural and forestry products.
Sector: Transportation.
Target price is $3.61.Current Price is $3.08. Difference: $0.53 – (brackets indicate current price is over target). If QUB meets the Citi target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
