BUZZ-Citi flags robust dividend growth for Dalrymple Bay, reiterates 'buy'

Reuters
Dec 16
BUZZ-Citi flags robust dividend growth for Dalrymple Bay, reiterates 'buy'

** Brokerage firm Citi sees Dalrymple Bay Infrastructure's DBI.AX distribution growth "as robust as it has ever been", lifting its dividend outlook to 6% per annum from 3-5%

** Citi increases its outlook on the Australian company's net profit after tax for FY26 and FY27 by 5-7%, maintains 'buy' on the stock

** The recent rise in funds from operations and cash will enhance the sustainability of dividends by the infrastructure co, the brokerage says

** Distributions face upside risk as the company explores more capital allocation options and the brokerage sees higher revenue from non‑expansionary capital expenditure

** Five of six analysts rate the stock "buy" or higher and one "sell"; their median price target is A$5.03, as per data compiled by LSEG

** Stock is up 33.3% YTD, as of last close

(Reporting by Anjali Singh in Bengaluru)

((anjali.singh2@thomsonreuters.com;))

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