In an agreement with the Federal government, Qube Holdings now has an option to purchase 200 hectares of the Beveridge site
at a future date.
The inland rail is expected to commence full operations by 2027 and Beveridge may be used as a development site for a rail freight terminal.
Citi feels this allows the company exposure to future upside from any development, while also affording time for greater certainty to emerge. The Buy rating and $3.58 target are retained.
Sector: Transportation.
Target price is $3.58.Current Price is $3.10. Difference: $0.48 – (brackets indicate current price is over target). If QUB meets the Citi target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
