0015 GMT - Inflation is good for business at Channel Infrastructure, says Forsyth Barr. The sharp increase in crude-oil prices is a positive for the company as 95% of its revenue is repriced annually in line with the producer price index, analyst Andrew Harvey-Green says. There is a link between crude oil prices and the PPI. A sustained 10% increase in crude oil prices increases PPI by 0.9%, says Forsyth Barr. "If crude oil prices average NZ$160/barrel (US$94/barrel) until 30 September 2026, we estimate a NZ$1.6 million FY27 revenue increase and a NZ$0.04/share valuation uplift," Forsyth Barr says. It retains a neutral call and NZ$3.09/share price target on Channel Infrastructure, which is up 1.1% at NZ$2.89. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
March 15, 2026 20:15 ET (00:15 GMT)
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