There were no major surprises for Morgans in the first half result as toll revenues were already known. It’s thought there’s potential for the total return to be impacted by the decay in the valuation of the APRR toll road, caused by its concession expiry in 2035 drawing closer.
Management guided for a 15.5cps distribution to be paid in 2H21, which was 2.5cps ahead of Morgans expectations. The analyst expects dividends to grow rapidly over coming years. The Hold rating is unchanged and the target price rises to $6.44 from $6.33.
Sector: Transportation.
Target price is $6.44.Current Price is $6.30. Difference: $0.14 – (brackets indicate current price is over target). If ALX meets the Morgans target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
