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AZJ - Aurizon Holdings News Story

A$3.9 0.0  0.9%

Last Trade - 3:30am

Sector
Industrials
Size
Large Cap
Market Cap £3.79bn
Enterprise Value £5.79bn
Revenue £1.60bn
Position in Universe 85th / 1946

BUZZ-Jefferies says cash flow resilience evident for Aurizon; rates 'buy'

Tue 8th June, 2021 8:18pm
** Jefferies rates rail freight operator Aurizon Holdings
Ltd  AZJ.AX  as 'buy' and fixes price target at A$5.36
    ** Brokerage notes that in the investor day hosted by co on
Tuesday, coal volume scenarios through to 2040 highlighted
management's expectations on cash flow resilience 
    ** Jefferies also notes that co forecasts that the business
is well positioned to provide annual average free cash flow of 
A$500 mln($386.90 mln)to A$650 mln between FY22-40 
    ** Co's growth in Bulk division provides the business the 
opportunity to positively transition assets from thermal coal
contracts to Bulk market growth - Jefferies
    ** Aurizon’s Bulk business provides integrated supply chain
services, including rail and road transportation, port services
and material handling
    ** Brokerage says with new mines and expansions becoming
less likely in New South Wales, the Bulk opportunity could
address key risk for Aurizon
    ** Jefferies sees co's 2021 investor day as providing a plan
to still deliver resilience in free cash flows as thermal
volumes reduce
  

($1 = 1.2923 Australian dollars)

 (Reporting by Vasudha Kaukuntla in Bengaluru)
 ((Vasudha.Kaukuntla@thomsonreuters.com))
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