Credit Suisse expects Spark New Zealand will deliver operating earnings at the top end of guidance when it reports on August 18. As part of the results, management is also due to update the market on a review of the infrastructure assets.
Other areas the broker will be scrutinising include commentary on the shift from pre-paid to monthly payment subscribers and the resulting revenue benefit, as well as the take-up of fixed wireless plans.
With the stock now trading through valuation the broker lowers the rating to Neutral from Outperform. While the upcoming infrastructure review has potential to be a positive catalyst Credit Suisse does not expect immediate monetisation. Target is steady at $4.50.
Sector: Telecommunication Services.
Target price is $4.50.Current Price is $4.54. Difference: ($0.04) – (brackets indicate current price is over target). If SPK meets the Credit Suisse target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
