Analysts expect latest acquisitions to boost earnings for Australia's Qube

Qube Holdings

02/05/2023 01:12

** Analysts at Jefferies see the potential for greater
interactions with Australia's Qube Holdings'  QUB.AX  bulk ports
business on account of the transport and logistics firm's recent
acquisitions which are considered to be earnings accretive 
    ** Jefferies raises price target to A$4.09 from a prior
A$4.01, maintains "buy" rating 
    ** QUB announces acquisition of Bulk haulage business Kalari
and a 50% stake in the New Zealand stevedoring business Pinnacle
Corporation for A$145 mln ($96.14 mln)
    ** Says acquisition of Kalari provides QUB with an
opportunity for greater use of its rail  capability to deliver
cost and revenue synergies 
    ** Analysts at Citi expect the two acquisitions to add 3-5%
growth to QUB's FY24 net profit after tax 
    ** While we note QUB still has ~$300 million before hitting
the middle of its target debt range to fund more bolt-on
transactions - Citi 
    ** Seven of 15 analysts rate the stock "buy" or higher and
eight "hold"; their median PT is A$3.35- Refinitiv data 
    ** Stock up 9.6% this year, as of last close

     ($1 = 1.5083 Australian dollars)

 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))