FY21 operating earnings were below Credit Suisse estimates, largely because of a one-off impairment and also lower revenue on unregulated transmission assets.
The broker notes flat FY22 guidance for distributions of 9.5c is also below expectations. As FY21 dividends are not covered by cash flows Credit Suisse prefers Spark Infrastructure ((SKI)). Neutral maintained. Target is reduced to $1.75 from $1.95.
Sector: Utilities.
Target price is $1.75.Current Price is $1.83. Difference: ($0.08) – (brackets indicate current price is over target). If AST meets the Credit Suisse target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
