In the good books
Aurizon Holdings (AZJ) Upgrade to Hold from Reduce by Morgans B/H/S 4/4/0.
Morgans suggests recent announcements of coal production cuts by Glencore and Anglo American are indicative of a weak coal price environment and reduced haulage volumes ahead. Add in increased interest costs in the near term and the broker has trimmed Aurizon forecast earnings.
Add in the Paris Agreement and coal haulage may face long-term structural headwinds, Morgans says. The broker expects downgrades to consensus earnings forecasts but believes the share price fall captures concerns.