Macquarie rates as Downgrade to Neutral from Outperform (3) - Macquarie has revised EUR and GBP and CPI forecast. Macquarie Atlas Roads is unhedged and has all cash flow coming from Europe. Earnings estimates are lowered by 4-9% and dividends by 11-12% over the next three years.
Rating is downgraded to Neutral from Outperform. With lower currency forecasts both the dividend and its growth rate will be lower.
The broker's valuation also slips but not as much as the near-term dividend changes as the stock benefits from lower long-term bond rate expectations. Target is reduced to $3.24 from $3.36. More