UBS and RBS have kept their “buy" recommendations on
UBS cuts its sum of the parts valuation to 70¢ from 75¢ to take into account new forecasts and updated wind power purchase agreement pricing, as well as the potential for the fund to convert its Collinsville power station to gas.
RBS argues the fund’s stake in the Loy Yang A brown coal power station is undervalued. “We still believe the real upside in owning TSI will come from monetising Loy Yang A," analysts Jason Mabee and William Allott say.
They stick to their 90¢ valuation on the stock, but put a 5 per cent discount on that to get their 85¢ target price.
The Australian Financial Review