“Falling interest rates will make NetLink’s stable distribution yield of 5.5% more attractive,” writes Chew in a Nov 5 note, two days after the release of its results. “It also allows lower refinancing costs for the $510 million due May 2026. Incremental interest expense could rise $7.5 million.”
Analysts are divided on NetLink NBN Trust after its revenue and ebitda for 1HFY2026 ended Sept 30 met consensus expectations.
Phillip Securities’ research head Paul Chew holds the most muted view, staying “neutral” on NetLink but with a higher target price of 93 cents, up from 87 cents previously, on lower risk-free rate and beta assumptions.
