DJ Aurizon Coal Volumes Could Fall Short -- Market Talk
0038 GMT - Macquarie reckons Australian rail operator Aurizon will miss guidance on coal volumes, as it grapples with production and port infrastructure issues as well as China's import ban. The bank projects FY 2021 coal volumes at around 203 million metric tons, below Aurizon's projection of 210 million-220 million tons. The stock also faces headwinds from rising bond yields, given Aurizon has a low-growth business, says Macquarie, which cuts its target by 4.9% to A$4.31. Still, it keeps an outperform rating on the stock, which is down 0.8% in Sydney at A$3.86/share. Aurizon's performance "is expected to be above industry" and its bulk arm should benefit from a strong iron-ore market, Macquarie says. (firstname.lastname@example.org; @RhiannonHoyle)
(END) Dow Jones Newswires
February 07, 2021 19:38 ET (00:38 GMT)
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