APA Group's (ASX:APA) upsized AU$2.1 billion organic growth pipeline lacks "granularity" on the composition, said Jarden Research in a Wednesday note.
The company on Wednesday reported fiscal 2025 underlying earnings of AU$0.173 per security, down from AU$0.189 a year earlier. Revenue for the 12 months ended June 30, including shares from net profit from joint ventures and associates, was AU$3.2 billion, compared with AU$3.06 billion a year earlier.
The research firm noted that the company plans to fund growth through free cash flows, asset recycling like the recent Networks sale, and other sources, including hybrids.
The research firm expects the market focus to be on timing and confidence of the organic growth pipeline, and potential balance sheet and earnings impacts from potential asset sales.
Jarden maintained its overweight rating and price target of AU$8.90 on APA Group.
APA Group's shares rose past 3% in recent Wednesday trade, earlier hitting their highest since December 2023.