Tag: ALX

The broker retains its Hold rating and notes the potential for a takeover price to exceed the current share price. Separately, the analyst raises its stand-alone valuation for the company to $6.47/share from $6.41.

Credit Suisse raises its target price for Atlas Arteria to $8.60 from $7.10 after media reports that IFM Investors is seeking to increase its shareholding to 15% from 7.94% at an $8.10 offer price.

The Hold rating and $6.41 price target are maintained.

The Add rating is retained and the target price rises to $6.91 from $6.78.

Macquarie upgrades Atlas Arteria to Outperform from Hold. Target price rises 35c to $6.87 to reflect improved cash flow and a 30 basis point cut in bond forecasts.

The broker maintains a Neutral rating given the French elections are looming and the main driver of the share price will be the extension of asset life. Target price is steady at $6.52.

Neutral and $6.52 target retained.

The Hold rating is unchanged and the target price rises to $6.44 from $6.33.

The target price increases to $6.31 from $6.14, due largely to forecast changes and a spot FX rate update. The Add rating is maintained.

Atlax Arteria’s 2020 proportional revenue was $1,233m, in line with Credit Suisse’s forecast but 2% ahead of consensus. Target drops to $7.20 from $7.90 with an Outperform rating.

The FY20 earnings (EBITDA) margins were close to Morgans expectations as traffic remains materially below pre-covid levels. Add rating is retained while the target is decreased to $6.14 from $6.51.

Falls in traffic and tolls on the APRR in France and the Dulles Greenway in the US in the December quarter were not as extensive as UBS feared. The broker notes liquidty is not an issue for Atlas Arteria given conservative gearing. Neutral and $6.10 target retained.

Third quarter traffic and revenue declined -2.7% and -1.9%, respectively, which was was 2% ahead of Morgans forecast. Traffic is considered to have benefited from the relaxation of covid-19 restrictions from May-July. Also the start of the summer holiday season assisted. 

Atlas Arteria is undertaking a capital raising via a $420m institutional placement and share purchase plan of up to $75m. Proceeds are to be used to repay the debt related to the APRR investment.

The company has announced a $420m placement to be used for repayment of the corporate debt facility, which UBS assesses removes some risk and simplifies the holding structure for the 31% stake in APRR.

At this stage the broker is forecasting a -70% drop in car and -45% in truck traffic on the APRR for another three months but notes as lockdowns begin to be eased from mid-May, activity should improve. This would reduce the risk around debt covenants.

Macquarie notes the Virginia Department of Transportation has signed off on a corridor study to address bottlenecks on the ramps to the Greenway/DTR interchange as has the Metropolitan Washington Airports Authority.

First half proportional operating earnings (EBITDA) grew by 1.6%. Cash flow from APRR grew by 18% because of the exit of high-cost funding structures, although some of this was eroded by additional costs associated with internalisation.

The company reported weighted average toll revenue increases of 0.3% for the June quarter amid -2.1% declines in traffic across the network. APRR traffic is now down -0.5% on a 12-month trading basis, partially because of the “Yellow Vest” protests.

2018 operating earnings (EBITDA) were ahead of Deutsche Bank’s forecasts. Growth continues to be supported by traffic, smaller declines on the Dulles Greenway and toll increases.

Protests have affected APRR traffic in the December quarter and traffic is expected to slow as consumer confidence declines amid rising fuel costs. Greenway performance was also weak with traffic down -4.5% in 2018.