In a Wednesday report, analyst Suvro Sarkar says zero value has been ascribed to Basslink in valuations for KIT, as he deems negative newsflow regarding Basslink as an “irritant at best” as it does not affect the trust’s fundamentals.
SINGAPORE (Jan 23): DBS Vickers Securities continues to rate Keppel Infrastructure Trust (KIT) at “buy” at an unchanged target price of 58 cents post the release of KIT’s 4Q18 results where DPU came in flat at 93 cents, in line with expectations.
The research house’s positive stance comes despite troubles at KIT’s Australian subsidiary Basslink, where the State of Tasmania is demanding over A$100 million worth of indemnification for losses incurred during Basslink’s outage in 2016.
