Credit Suisse notes speculation the media regarding Ampol acquiring Z Energy, subsequent to the closure of the NZ refinery and resulting conversion of New Zealand to a 100% fuel import market.
The broker believes an acquisition could have merit because of potential procurement and retail synergies. That said, Z Energy may not be the highest priority opportunity for Ampol and an acquisition would properly require an equity issue.
Neutral rating and $29.87 target maintained.
Sector: 0.
Target price is $29.87.Current Price is $28.19. Difference: $1.68 – (brackets indicate current price is over target). If ALD meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
