Citi hikes PT, earnings view on Aurizon Holdings on strong outlook

Aurizon Holdings

19/07/2023 05:55

** Analysts at Citigroup hike price target on Australian
rail freight operator Aurizon Holdings  AZJ.AX  to A$3.92 from
A$3.70
    ** Citi hikes its EBITDA estimate for AZJ by 4-5% across
FY24-25 on improved coal/network weather outlook
    ** AZJ trading 2.5% lower at A$3.705 as at 0432 GMT
    ** Initial view is of an 'S' curve shape in profitability at
best, meaning target returns on capital might be several years
away, Citi says
    ** AZJ on Tuesday said it expects FY24 underlying EBITDA
between A$1.59 bln ($1.08 bln) and A$1.68 bln, vs A$1.47 bln in
FY22; network and coal units remain "resilient and
cash-generative"
    ** Brokerage retains "neutral" rating as it expects low free
cash flow years ahead
    ** Seven of 16 analysts rate AZJ "buy" or higher, six "hold"
and three "sell" or lower; their median PT is A$3.87 – Refinitiv
data


($1 = 1.4741 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))