Jefferies initiates CK Infrastructure with Buy, sets HK$60.40 target

Published 05/03/2025, 08:56
Jefferies initiates CK Infrastructure with Buy, sets HK$60.40 target

On Wednesday, Jefferies research firm began covering CK Infrastructure Holdings (1038:HK) (OTC: CKISY), assigning a Buy rating to the company’s stock along with a price target of HK$60.40. The new coverage by Jefferies highlights the firm’s confidence in CK Infrastructure as a significant player in the utilities and infrastructure sector. According to InvestingPro data, the company currently maintains a market capitalization of $17.5 billion and demonstrates good overall financial health with a score of 2.55 out of 4.

CK Infrastructure Holdings, which is dual-listed and operates globally, has been recognized for its strong dividend offerings, which are supported by a diverse portfolio of regulated and contracted assets, as well as a solid financial foundation. InvestingPro data reveals an impressive 28-year streak of consecutive dividend payments, with a current dividend yield of 2.54%. The company operates with a moderate debt-to-equity ratio of 0.18, supporting Jefferies’ assessment of its solid financial foundation. The firm’s proven track record of operational excellence, combined with the potential for growth through mergers and acquisitions, further bolsters the positive outlook.

The analyst at Jefferies, in a statement, lauded CK Infrastructure for its performance and strategic position, "CK Infrastructure is a dual-listed, global utility assets/infrastructure powerhouse offering an attractive and stable dividend underpinned by diversified regulated/contracted assets and a robust balance sheet. A respectable track record of operational outperformance and upside optionality from M&A supports this. We see CKI as a play on safety with a stable dividend profile, providing yield in a volatile market."

Investors seeking refuge in more stable investments with reliable dividends might find CK Infrastructure an appealing option, especially in the context of current market volatility. The company’s diversified asset base and financial health are key factors that contribute to its ability to maintain a steady dividend payout.

The new price target set by Jefferies suggests a level of confidence in the future performance of CK Infrastructure Holdings. The target of HK$60.40 represents Jefferies’ expectation for the stock’s potential trajectory based on their analysis and the company’s fundamentals.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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