In today’s briefing:
- DigiCo Infrastructure REIT IPO Trading – Now for the Real Test, Ex-Adjustments
- GTN Ltd – Cost out, utilisation recovery and capital management
DigiCo Infrastructure REIT IPO Trading – Now for the Real Test, Ex-Adjustments
- DigiCo REIT (DIGICO AU) raised around US$1.3bn in its Australian IPO.
- DigiCo REIT (DREIT) aims to be a diversified owner, operator and developer of data centres, with a global portfolio and broad investment mandate across stabilised, value-add and development opportunities
- We have looked at the company’s past performance in our previous notes. In this note, we will talk about the trading dynamics.
GTN Ltd – Cost out, utilisation recovery and capital management
- RaaS is initiating coverage of media group GTN (ASX:GTN) with a base peer EV/EBITDA-derived valuation of $0.81/share, representing potential capital upside of 40% from the current share price, although we suggest premiums of 10% and 20% to the peer average are justified based on GTN’s superior metrics.
- • GTN has seen improved adjusted EBITDA across FY23 (+13.5%) and FY24 (+15%) but the utilisation rate of advertising spots is still below pre-pandemic levels.
- We believe further improvements in utilisation together with some stock-specific cost reductions will drive EBITDA 31% higher in FY25, placing the group on very attractive multiples relative to peers.
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