In a report released today, Patricia Yeung from DBS maintained a Buy rating on CK Infrastructure Holdings (CKISF – Research Report), with a price target of HK$59.00.
Patricia Yeung’s rating is based on CK Infrastructure Holdings’ strong financial performance and strategic growth initiatives. The company has demonstrated modest growth in attributable profit and dividends per share, supported by a solid recurring revenue stream, which is expected to sustain higher dividends in the future. Additionally, CKI’s robust merger and acquisition pipeline serves as a catalyst for share price appreciation, with significant contributions from newly acquired businesses and regulated operations, particularly in the UK.
CKI’s globally diversified portfolio and three-pronged growth strategy further bolster its investment appeal. The company maintains a conservative balance sheet, allowing it to capitalize on acquisition opportunities in favorable legal and regulatory environments. Looking ahead, CKI’s management is optimistic about future M&A activities, especially with potential deals like Thames Water, which could enhance recurring income and cash flow. Despite some risks related to currency fluctuations and interest rate hikes, CKI’s stable project portfolio and strong cash flow support a steady increase in dividends, offering an attractive yield to investors.
In another report released on March 5, Jefferies also initiated coverage with a Buy rating on the stock with a HK$60.40 price target.