Credit Suisse notes Dalrymple Bay Infrastructure delivered a soft full year result, with terminal infrastructure charge revenue of $203m a -1% miss on the broker’s forecast and earnings of $187m marginally lower than an expected $190m.
The company is negotiating price with customers collectively, increasing customer bargaining power and limiting opportunity for differentiated pricing. Should negotiations fail, arbitration by the QCA would take around 30 weeks and drag price uncertainty into 2023.
The Outperform rating is retained and the target price decreases to $2.70 from $2.90.
Target price is $2.90.Current Price is $2.03. Difference: $0.87 – (brackets indicate current price is over target). If DBI meets the Credit Suisse target it will return approximately 30% (excluding dividends, fees and charges – negative figures indicate an expected loss).
