Morgan Stanley anticipates APA Group's Network REZolution consortium has likely not been successful in its bid for the grid operator role at the CWOREZ project. The NSW government has appointed ACE Energy consortium as "first ranked".

This is a proposed transmission project to support the delivery of a pilot renewable energy zone (REZ) in the Central-West Orana region of NSW (CWOR).

The broker notes the project was a priority growth opportunity for APA Group and suggests the news may induce a modestly negative share price reaction.

Equal-weight rating. Target is $10.68 and a Cautious industry view is maintained.

Sector: Utilities.

Target price is $10.68.Current Price is $10.28. Difference: $0.40 - (brackets indicate current price is over target). If APA meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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