Joseph Kusia, an analyst from Goldman Sachs, has initiated a new Buy rating on Aurizon Holdings Ltd. (QRNNF).
Joseph Kusia has given his Buy rating due to a combination of factors influencing Aurizon Holdings Ltd. Despite experiencing some challenges in the first half of 2025, particularly in coal and bulk haulage, the company’s network business has shown resilience. The extension of the buyback program highlights the company’s strong free cash flow, which is expected to persist in the medium term through coal and network profitability.
Additionally, Aurizon’s new landbridging strategy is beginning to show promise with new shipping services, and there is potential for significant growth if this strategy is successful. The company also stands to benefit from favorable conditions in green metals and a potential recovery in agriculture. Furthermore, Aurizon’s stock is currently valued at historic lows compared to the ASX200 and its peers, presenting an attractive entry point for investors. The valuation model suggests a target price of A$3.70, indicating a potential upside of approximately 13%.
In another report released on February 23, Jefferies also maintained a Buy rating on the stock with a A$3.96 price target.