APA Group's December first-half result edged out consensus and Morgan Stanley forecasts, thanks to strong Energy Infrastructure and Asset Management earnings growth.

Earnings triumphed over a sharp rise in corporate costs leading the broker to forecast a 3% to 4% upside to FY22 earnings (EBITDA) consensus estimates as CPI tailwinds escalate.

The broker considers the company's Basslink strategy will likely prove a plus, spying undersea transmission benefits.

Equal-weight rating retained and target price eases to $10 from $10.11. Industry view: Cautious.

Sector: Utilities.

Target price is $10.00.Current Price is $10.01. Difference: ($0.01) - (brackets indicate current price is over target). If APA meets the Morgan Stanley target it will return approximately 0% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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