Spark New Zealand Ltd
SPK: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$5.90 | Jmwpmd | Kblbgcl |
Telecom's Balance Sheet Capacity Post AAPT Sale Offers Medium-Term Capital Management Opportunity
The recent sale of AAPT has bolstered the balance sheet of Telecom New Zealand, or Telecom, with gearing levels now below long-term management targets. In the absence of a material increase in the dividend, Telecom will degear further in the medium term on our estimates. A strong balance sheet provides scope for Telecom to undertake new capital management initiatives within the next 12 to 24 months, assuming delivery of operational and cost saving targets.