Jefferies says weak HY coal volumes point to rev hit for Australia's Aurizon

Aurizon Holdings

10/02/2023 24:20

** Jefferies cuts price target on Australia's largest rail
freight operator Aurizon Holdings Ltd  AZJ.AX  to A$4.79 from
A$4.88; maintains "buy" rating 
    ** Brokerage says that while management's guidance was
unchanged at the AGM, weaker 1H23 coal volumes on account of
weather impacts further suggest revenue will be more challenging
    ** Adds that recent wet weather event in Mackay, Queensland
and the derailment in Blackwater System will also challenge 2H23
coal volumes
    ** While AZJ will release HY results on Feb. 13, brokerage
forecasts a 1H23 EBITDA of A$743 mln ($515.57 mln); sees interim
dividend of 11 AU CPS
    ** Three of 13 analysts rate the stock "buy" or higher, six
"hold" and four "sell" or lower; their median PT is A$4.00 –
Refinitiv data
    ** Stock has risen 1.1% this year, as of last close, and
added 6.9% in 2022
($1 = 1.4411 Australian dollars)
 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))