Morningstar 'content' with Spark NZ's new strategy, sees dividend growth

Spark New Zealand

05/04/2023 22:57

** Morningstar is "content" with telecommunications firm
Spark New Zealand Ltd's  SPK.NZ  new three-year strategy to
fortify current earnings
    ** Low- to mid-single-digit growth still equates to steadily
rising dividends, a key appeal for SPK shares - brokerage
    ** Spark said on Wednesday it would invest more in data
centres and its 5G business over the next three years as part of
a new strategy
    ** Brokerage expects dividends to grow from an expected 27
NZ cents per share in fiscal 2023 to 28.5 NZ cents in fiscal
2026; sees 2023 and 2024 revenue to be NZ$3,776 mln ($2.38 bln)
and NZ$3,867 mln, respectively
    ** Spark's dividend outlook is not only supported by the
expected earnings and free cash flow benefits from the new
three-year strategy, but also by its solid balance sheet,
Morningstar says 
    ** Four of 7 analysts rate the stock "buy", 2 "hold", 1
"sell"; median PT is NZ$5.30 – Refinitiv
    ** Stock has fallen 6.3% between January and March
    
($1 = 1.5840 New Zealand dollars)

 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))