is under Algo Engine buy conditions following the higher low support at $2.10. Spark Infrastructure
1H20 earnings delivered slightly better growth than expected with full-year DPS guidance unchanged at $0.135. EBITDA increased 4% to $430m.
Cash flow was weaker than expected and we see slight downside pressure on the dividend in FY21 & FY22.
is now under Algo Engine buy conditions. Spark Infrastructure is under Algo Engine buy conditions and is a current holding in our ASX 100 model. Spark Infrastructure
We see price support building near the new high low price formation at $2.33
is under Algo Engine buy conditions following the higher low formation at $2.20. Spark Infrastructure
Spark Infrastructure has a long history of owning and investing in essential service infrastructure. Their networks deliver electricity to more than 5 million Australian homes and businesses.
This enters our radar and we’ll continue to review the earnings outlook and business fundamentals.
Following the recent takeover offer for
APA at $11 per share, (subject to FIRB review), we see a reasonable risk/reward opportunity to buy both APA and SKI.
A soft backdrop for global bond yields should provide downside protection as investors seek out defensive yield opportunities. Added upside exists in
APA if the takeover is given the green light by regulators.
Spark Infrastructure (SKI)
Our Algo Engine generated a buy signal in
Spark Infrastructure mid last year.
With the price action trading down to $2.30, we now see scope for higher prices in
Spark (SKI) as global bond yields move lower on trade tension fears.
APA received a non-binding takeover offer at $11 per share, implying a value of almost 15x earnings. APA has granted access to due diligence and the offer will remain subject to regulatory approval from FIRB.
With the share price trading below the takeover offer, we’ll be weighing up the arbitrage opportunity in the week ahead.
We feel other stocks within the infrastructure sector will continue to get a boost from takeover interest and medium term support from the bond market’s tepid outlook.
One example we’re attracted to within this theme is Spark Infrastructure.