a screaming buy

A leading broker retained a "buy" rating on MIG with a price target of $3.81 (down from $4.35) after MIG went ex SRG 3 for 1 entitlement yesterday. The broker has an indicative SRG valuation of $1.35. The broker said MIG will become a much more growth orientated fund with one Australian toll road (45 pct of M7 in early ramp up). Average concession length will lift from 60 to 65 years and weighted average risk premium will rise by 45 bp. The broker expects to see more capital recycling by MIG over the next 24 months with opportunities for the de merger of other assets eg US roads. Key news over the next few months will be the capital management review due beginning of August