- NetLink Trust's share price is trading at 12-month forward distribution yield of 6.5%, implying yield spread of 360bps. Singapore Government’s 10-year bond yield has shrunk to 2.9% (3.5% in Nov 2022) implying a yield-spread of 360bps (similar to its average spread since IPO), but higher than last 12-month average of 290bps.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- We estimate every 10 basis point change in regulatory WACC would have a +1% impact on its EBITDA and forecast a 300-500 basis point hike in regulatory WACC. In terms of timeline, we expect a revised regulatory WACC to be announced in the first half of calendar year of 2023. Despite a higher regulatory WACC, NetLink Trust may raise its distributions by only 2%-3%, in our view, as it focuses on the long-term sustainability of its distributions.
Upgrade NetLink Trust to BUY with a higher target price of S$0.98.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Sachin MITTAL DBS Group Research | https://www.dbs.com/insightsdirect/ 2023-01-10
Read also DBS's most recent report:
2023-05-23 NetLink NBN Trust - 6% Yield Largely Independent Of Macro Outlook.
Price targets by 4 other brokers at NetLink Trust Target Prices.
Listing of research reports at NetLink Trust Analyst Reports.
Relevant links:
NetLink Trust Share Price History,
NetLink Trust Announcements,
NetLink Trust Dividends & Corporate Actions,
NetLink Trust News Articles
