Report
Adrian Atkins
EUR 100.00 For Business Accounts Only

APA Brushes Off Regulatory Attack but Headwinds Remain; FVE Increased to AUD 9

We’ve moderately upgraded narrow-moat APA Group’s medium-term earnings forecasts after discussions with management. Of most interest was the lack of effectiveness of adverse gas market rule changes. As a result, we increased our fair value estimate 6% to AUD 9 per security. Nonetheless, our valuation can’t get anywhere near the current share price of AUD 11.30 without factoring in record low interest rates permanently. As we believe interest rates will rise over the medium term, we consider APA ...
Underlying
APA Group

APA Group's principal activities are the ownership and operation of energy infrastructure assets and businesses, including energy infrastructure, primarily gas transmission businesses located across Australia; asset management and operations services for the majority of Co.'s energy investments and for third parties; and energy investments in listed and unlisted entities. Co. comprises the following reportable segments: Energy Infrastructure, Asset Management, and Energy Investments.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Adrian Atkins

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