Morgans suggests the first half result was a sideshow to the main game, being the takeover bid accepted by Spark Infrastructure Group’s Board yesterday. It’s though investors may either hold (capital certainty and return) or exit and seek higher potential returns elsewhere.
The analyst estimates the potential return based on the bid price is 1.9%, or 3.7% including franking credits that may be distributed attached to a special dividend. The broker maintains its Hold rating and $2.89 target price.
Sector: Utilities.
Target price is $2.89.Current Price is $2.83. Difference: $0.06 – (brackets indicate current price is over target). If SKI meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
