** Analysts at Morningstar maintain Port of Tauranga's POT.NZ fair value estimate of NZ$5.6 and consider the stock overvalued
** Brokerage says stock of the marine port services provider trades on forward PE of 37 and offers dividend yield of just 2.5%
** Last week, the Accident Compensation Corporation entered into a voting agreement with a consortium, which includes Port of Tauranga, proposing to acquire a minority shareholding in Marsden Maritime MMH.NZ, which owns 50% of Northport, near Whangarei in Northland and adjacent commercial land
** Brokerage says deal is 'small' from POT's perspective but makes strategic sense with expansion likely to be easier with three aligned owners
** Adds New Zealand needs more port capacity and Northport expansion is sensible long-term solution
** POT stock up 4% YTD while MMH up 64.6% so far this year
(Reporting by Sneha Kumar in Bengaluru)
((Sneha.kumar@thomsonreuters.com;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.