Tweaking Mighty River's Estimates but Fair Value Remains Unchanged

We lower our fiscal 2015 estimates for Mighty River Power on the back of the latest operating statistics released by the company. Our earnings before interest tax depreciation and amortisation, or EBITDA, forecast declines to NZD 482 million from NZD 491 million. This is at the bottom end of the firm's NZD 480 to NZD 500 million guidance issued during the first half. We have also made modest adjustments to our medium-term forecasts. However, the changes to our earnings projections are not material enough to reduce our fair value estimate of NZD 2.90 per share. Mighty River shares are fairly priced at current levels with an attractive fully imputed dividend yield of 4.6%. We maintain our narrow economic moat rating on the basis of efficient scale.