Dalrymple Bay falls; Morningstar initiates coverage, says co overvalued

Dalrymple Bay Infrastructure

26/05/2026 01:50

Updates

** Shares of Dalrymple Bay Infrastructure DBI.AX fall as much as 0.7% to A$5.46

** Morningstar initiates coverage on Australia's Dalrymple Bay Infrastructure DBI.AX with a Wide Economic Moat rating and a fair value estimate of A$4.60

** Says the infrastructure company is overvalued because of longer-term headwinds; fair value estimate is nearly 16% lower than current levels

** But highlights the cost advantage the company enjoys in servicing nearby coal mines as they pay lower rail transport costs to reach DBI's terminal compared to other, more distant terminals

** Investment research firm expects relatively strong earnings growth in the medium term as terminal charges lift with inflation, and to recoup elevated capital expenditure

** Six of eight analysts rate the stock "Buy" or higher and two "Hold"; their median price target is A$5.63, as per data compiled by LSEG

** Stock is up 9.4% YTD

(Reporting by Anjali Singh in Bengaluru; Editing by Sonali Paul)

((anjali.singh2@thomsonreuters.com;))