Equity Analysis /

AU : Genex Power - Don’t skip value for a quick deal

    Max Vickerson
    Max Vickerson

    Research Analyst

    26 July 2022
    Published byCGS-CIMB

    GNX has received an indicative all cash takeover offer at 23cps from a partnership between a Skip Capital fund and Stonepeak Partners. The offer comes in the midst of record revenues achieved in FY22, operating cash flow and early progress on constructing Kidston Hydro. We think the 23cps materially undervalues the company given our confidence in the hydro project being delivered on budget and the medium-term outlook for the company. We retain our ADD rating and adjust our target price to 30cps.