Aurizon Holdings' first half profit was a -2.4% miss versus Ord Minnett's estimate, though earnings (EBITDA) were broadly in-line. A 95%-franked interim dividend of 10.5cps was also broadly in-line.

Management reiterated FY22 earnings guidance of $1.4-1.5bn. The analyst believes the key to a positive multiple re-rating is the speed at which Bulk (non coal) earnings ramp-up to diversify away from thermal coal. Lighten. Target rises to $3.35 from $3.30.

Sector: Transportation.

Target price is $3.35.Current Price is $3.55. Difference: ($0.20) - (brackets indicate current price is over target). If AZJ meets the Ord Minnett target it will return approximately -6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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