Morningstar upbeat on NZ's Genesis Energy's financial health

Genesis Energy

01/12/2023 24:45

** Analysts at Morningstar expect Genesis Energy  GNE.NZ  to
remain in sound financial health despite the new investment plan
of NZ$1.1 bln ($677.82 mln) in new renewable generation and
storage assets by 2030
    ** Brokerage lifts fair value estimate to NZ$2.70/shr
    ** Morningstar expects that co's profitability and margins
can increase during periods of low rainfall and high electricity
prices, as excess generation is sold at higher prices in these
condiditions
    ** "During the next five years, we forecast earnings before
interest, tax, depreciation and amortisation (EBITDA) grows 2%
each year on average" - Morningstar
    ** Three of five analysts rate stock "Buy" or higher, one
rates "Hold" and one rates "Sell"; their median PT is NZ$2.60 -
LSEG data
        ** Stock down 8.1% YTD as of last close

($1 = 1.6228 New Zealand dollars)

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((Shivangi.Lahiri@thomsonreuters.com;))