In the good books
AURIZON HOLDINGS LIMITED (AZJ) Upgrade to Outperform from Neutral by Macquarie B/H/S: 1/4/3
The company is working with other investors to restructure the port and coal business around Wiggins Island, Queensland. Macquarie finds the concept interesting, albeit with numerous challenges. The main issue in the structure, the broker believes, is the take-or-pay obligations to the port which are material for the miners. Upside for Aurizon is likely to emerge from the lifting of volumes and the lowering of operating costs. Target is $5.33. Upgrade to Outperform from Neutral, as valuation is the core driver and the stock appears attractive against the target.