Morgan Stanley tweaks its valuation to account for recent volume data. Cyclical volume weakness is in the background and the broker looks for the company to espouse further capital initiatives.
As Aurizon has a strategy of gradually drawing down on its debt capacity the broker is forecasting further buybacks in FY21.
Target is reduced to $5.78 from $5.88. Equal-weight rating. Industry view: Cautious.
Target price is $5.78.Current Price is $5.65. Difference: $0.13 - (brackets indicate current price is over target). If AZJ meets the Morgan Stanley target it will return approximately 2% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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