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CDC Valuation Jump Might Change The Case For Investing In Infratil (NZSE:IFT)

Simply Wall St · 01/08 22:23
  • In recent days, Infratil reported that the valuation of its CDC data center investment increased by A$349 million over the three months to 31 December 2025, coinciding with broader strength in New Zealand equities.
  • This uplift highlights how Infratil’s focus on data infrastructure can materially influence the value of its portfolio alongside its renewables and essential services exposure.
  • We’ll now examine how the higher CDC valuation shapes Infratil’s investment narrative, particularly its outlook for data infrastructure-driven earnings.

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Infratil Investment Narrative Recap

To own Infratil, you need to be comfortable with a portfolio built around data infrastructure, renewables and essential services, where asset valuations can shift quickly. The A$349 million uplift in CDC’s valuation supports the near term catalyst around data center earnings, but it does not remove the key risk that changes in customer requirements or contracts at CDC could still delay capacity and affect returns.

The recent half year result to 30 September 2025, which showed a move back into profitability and higher revenue, feels particularly relevant alongside the CDC revaluation. Together, they underline how much of Infratil’s story now rests on execution at CDC and the timing of new contracted capacity converting into cash flow.

Yet against this positive CDC news, investors should be aware of the risk that shifting customer requirements could still disrupt expected data center earnings...

Read the full narrative on Infratil (it's free!)

Infratil's narrative projects NZ$4.1 billion revenue and NZ$300.1 million earnings by 2028. This requires 4.4% yearly revenue growth and an earnings increase of about NZ$808 million from NZ$-508.3 million today.

Uncover how Infratil's forecasts yield a NZ$14.02 fair value, a 23% upside to its current price.

Exploring Other Perspectives

NZSE:IFT Earnings & Revenue Growth as at Jan 2026
NZSE:IFT Earnings & Revenue Growth as at Jan 2026

Seven members of the Simply Wall St Community currently value Infratil between NZ$0.51 and NZ$15.75, with opinions spread across the full range. When you set this against CDC’s recent A$349 million valuation uplift, it underlines how differently people can weigh data center growth against execution risks, so it is worth comparing several viewpoints before deciding what matters most for you.

Explore 7 other fair value estimates on Infratil - why the stock might be worth as much as 38% more than the current price!

Build Your Own Infratil Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.