Morningstar cuts Chorus valuation

Last updated 16:05 04/12/2013

Relevant offers


Two New Zealand wines win trophies at International Wine and Spirit Competition $56m police payroll project in trouble, says Treasury report Dwelling consents at 11-year high, but not high enough in Auckland, economists warn Family farms our future agri powerhouses: CANNZ paper Victory for Feilding meatworkers, with more work to do Finance diary 2000 broken hopes at failed Wellington call centre Hawke's Bay syrah wins top trophy at Air New Zealand Wine Awards Health drink SOS Hydration seeks to raise $2.3m in crowdfunding campaign AFT Pharmaceuticals NZX and ASX listing to fund growth

Analyst Morningstar has slashed its valuation of Chorus shares from $3.60 to $1.60.

Morningstar said it believed the company might need to raise $400 million from shareholders by June and could have to price any rights issue as low as $1-a-share.

Chorus shares were trading at $1.45 in mid-afternoon trading, which Morningstar said was fair value.

Morningstar said it didn't expect Chorus to pay any dividends in the near term and "an adverse regulatory regime and long-term regulatory uncertainty" would preclude it from earning excess returns over and above its cost of capital for the foreseeable future.

Ad Feedback

- Fairfax Media

Special offers

Featured Promotions

Sponsored Content