Asciano Group (AIO): Buying Time, Upping the Ante
Thursday 07 August 2008 8:58 AM
RESULT: “Underlying EBITDA” $653m in line with guidance but includes $28m in one-off profits. Continuing business EBITDA ~$625m still aided by material provision releases (ie. GOCF was just $571m). Fundamentally we view AIO as fully priced at 12.7x FY09 EV/EBITDA. But AIO is now an event trade & if that’s your game, the quality of its asset base/growth options favours being long. However, it is not a sufficient basis to change our NEUTRAL view.