** Morningstar expects New Zealand's Spark's SPK.NZ net-debt to EBITDAI ratio to fall to around 1.9 on its pro forma FY25 earnings estimates
** SPK said on Tuesday it will sell 75% stake in data centre business to Aussie fund manager Pacific Equity Partners, valuing the business at up to NZ$705 mln ($419.76 mln)
** Spark's remnant 25% interest ensures its shareholders can still benefit from the data centre "field of dreams" to be rolled out, adds Morningstar
** Says SPK shares remain at an attractive discount to its intrinsic assessment
** Notes "understandable" investor caution due to three downgrades to earnings estimates over the last 18 months
** Adds market needs tangible evidence of cost-cutting with upcoming earnings to get rid of the cautious nature
** Stock down 11.7% YTD
($1 = 1.6795 New Zealand dollars)
(Reporting by Rishav Chatterjee in Bengaluru)
((Rishav.Chatterjee@thomsonreuters.com;))
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