No Change to Fair Value for Port of Tauranga Despite Near-Term Earnings Headwinds

We have trimmed our near term forecasts for the Port of Tauranga, or POT, in light of management's guidance at the annual general meeting. The company expects underlying net profit after tax, or NPAT, to come in between NZD 78 million and NZD 83 million, or flat, versus the prior period. Our fair value estimate for POT stands at NZD 15.00 per share, as we have not made any changes to our longer term forecasts. We like POT’s business model and its strong competitive advantages which gives it a wide economic moat. However we think the stock is modestly overvalued compared to our intrinsic value and would advocate a better entry point before initiating a position in the stock.