Brokerages cautious on Australia's Aurizon despite BHP contract win

Aurizon Holdings

17/06/2025 04:04

Updates

** Shares of Aurizon Holdings AZJ.AX up 0.3% at A$3.11 on the day

** Jefferies says rail freight operator's long-term contract from BHP BHP.AX enhances contract quality and divisional growth profile

** But brokerage says market seeks resolution on three customers in administration and a clear path to breakeven for the Intermodal business

** Jefferies maintains 'buy' rating at price target of A$3.79

** Jarden views the contract as a way to signal the end of a challenging period for Aurizon's bulk business, which has been under pressure

** Jarden trims target price to A$3.15 from A$3.2, retains 'neutral' call

** Aurizon down 4.5% YTD, including the day's moves

 (Reporting by Kumar Tanishk and Nikita Maria Jino in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))