Atlax Arteria’s 2020 proportional revenue was $1,233m, in line with Credit Suisse’s forecast but 2% ahead of consensus. Proportional operating income fell slightly short of the broker’s estimate.
Management guides to 13c for the first half distribution and appears upbeat on delivering distribution growth especially with the Warnow debt restructure that could contribute at least EUR6m pa to Atlas’s distributions.
Credit Suisse expects traffic recovery to accelerate in the second half of the year and reach pre-covid levels by the first half of 2022.
Target drops to $7.20 from $7.90 with an Outperform rating.
Sector: Transportation.
Target price is $7.20.Current Price is $5.49. Difference: $1.71 – (brackets indicate current price is over target). If ALX meets the Credit Suisse target it will return approximately 24% (excluding dividends, fees and charges – negative figures indicate an expected loss).
