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Analysts trim Netlink NBN Trust's target price; awaiting regulatory review on pricing

The Edge Singapore
The Edge Singapore8/17/2022 03:37 PM GMT+08  • 3 min read
Analysts trim Netlink NBN Trust's target price; awaiting regulatory review on pricing
NLT remains its position as a defensive play amid the current backdrop of rising inflation
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Analysts have turned slightly more restrained on Netlink NBN Trust following its recent earnings report, as they await results of a regulatory review that will decide its new pricing.

For its 1QFY2023 ended June, NLT reported earnings of $27.6 million, up 11.3% y-o-y. Revenue in the same period was up 4.8% y-o-y to $97.9 million, with growth coming from higher ancillary project revenue and connections revenue. The earnings, unsurprisingly, were in line with expectations, given the steady nature of its business model.

Kelvin Tan of Maybank Securities prefers to be more “prudently below consensus”, pending results of a review by industry regulator IMDA, which will determine the new pricing NLT can charge since 2017 when it was listed.

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