Report
Adrian Atkins

Spark Infrastructure Looking Better Value After Dip

We maintain our AUD 2.40 per share fair value estimate for no-moat Spark Infrastructure after making some minor adjustments to our forecasts to incorporate the recent regulatory decision for TransGrid, which runs from 2018 to 2023. After a sharp correction in recent months, the stock looks reasonably good value, currently trading at an 8% discount to our valuation. The positives such as defensive cash flows, a 7.2% distribution yield, and moderate growth potential are starting to outweigh the ne...
Underlying
Spark Infrastructure Group

Spark Infrastructure is engaged in investing in regulated electricity distribution and transmission businesses in Australia. Co. reportable segments are: Victoria Power Networks, which represent the 49.0% interest in two electricity distribution businesses in Victoria; SA Power Networks, which represent the 49.0% interest in the electricity distribution business in South Australia; TransGrid, which represent the 15.01% interest in the electricity transmission business in New South Wales; and Other which represents the economic interest in DUET Group, an Australian Securities Exchange listed entity head quartered in New South Wales.

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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