NZ's Channel Infrastructure gains as Macquarie hikes PT on new contract

Channel Infrastructure NZ

18/09/2024 04:59

** Shares of Channel Infrastructure's  CHI.NZ  rise 0.6% to
NZ$1.7 after Macquarie raises price target on new contract 
    ** Brokerage raises PT on the fuel infrastructure provider
to A$1.93 from A$1.80, maintains "outperform" rating
    ** CHI announces 10-yr private storage contract for jet fuel
that will generate NZ$55 mln ($34.11 mln) of additional rev over
contract term from Q1 2027
    ** Macquarie says contract provides stability of earnings
and fixed-fee element of the terminal revenue means that ~50% of
CHI's revenues are not subject to fuel forecasts
    ** "We have renewed confidence that there is a high
likelihood that the existing private storage contracts will be
renewed at term end" - Macquarie
    ** CHI stock up 18.5% YTD
 
($1 = 1.6126 New Zealand dollars)

 (Reporting by Ayushman Ojha in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com;))