Macquarie Atlas Road - Well Flagged, Good Track Record but Previous Placements Haven't Done Well

Macquarie Atlas' Distribution Tracking Our Expectations

MQA Placement: Up Its Stake in French Toll Road, DPU Accretive with Attractive Discount

Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

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Equity Bottom-Up

Macquarie Atlas’ share price has appreciated 25% to AUD 5.46 in the past three months. In our view, the price appreciation reflects an insatiable appetite for high dividend yielding stocks. Our forecast 2017 dividend yield has gone from 4.6% to 3.7% and we estimate the prospective 2017 cash flow multiple has expanded from 21.2 to 26.7 which we believe is unsustainable. Although interest rates are likely to stay lowAlthough interest rates are likely to stay low for longer, we reiterate our caution in chasing expensive infrastructure stocks. We retain our no-moat, high uncertainty rating and highlight the stock is now trading at a 30% premium to our unchanged fair value estimate of AUD 4.20.Analyst: Carolyn Holmes

Macquarie Atlas’ share price has appreciated 25% to AUD 5.46 in the past three months. In our view, the price appreciation reflects an insatiable appetite for high dividend yielding stocks. Our forecast 2017 dividend yield has gone from 4.6% to 3.7% and we estimate the prospective 2017 cash flow multiple has expanded from 21.2 to 26.7 which we believe is unsustainable. Although interest rates are likely to stay lowAlthough interest rates are likely to stay low for longer, we reiterate our caution in chasing expensive infrastructure stocks. We retain our no-moat, high uncertainty rating and highlight the stock is now trading at a 30% premium to our unchanged fair value estimate of AUD 4.20.Analyst: Carolyn Holmes

The Market's Obsession for Yield Is Diluting Overall Returns Via Higher Performance Fees

Atlas Arteria

The Market's Obsession for Yield Is Diluting Overall Returns Via Higher Performance Fees