Analyst Note
| Mark Taylor |Our fair value estimate for no-moat Ventia increases 5% to AUD 4 after strong first-half 2023 earnings and time value of money. The Australasian infrastructure services provider delivered more than 10% growth in revenue, EBITDA, and net profit after tax. And it says 2023 NPAT before amortisation of acquired intangibles, or NPATA, is tracking toward the top end of the 7%-10% growth guidance. We increase to a 10% NPATA growth assumption from our prior midguidance 8.5% target and our 2023 underlying NPAT forecast increases by 4% to AUD 185 million. Ventia shares are materially undervalued, possibly due to vendor shares still overhanging the market.