New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>We downgrade our rating on Port of Tauranga (POT) to NEUTRAL from OUTPERFORM to reflect its material recent multiple rerating.</li><li> POT's one-year forward EV/EBITDA multiple now appears fair on a bond-rate-adjusted basis relative to its trading history, and its EV/IC (of ~1.8x) appears full relative to its current sub-WACC ROIC.</li><li>While attractive forward earnings growth supports a positive investment outlook for POT, we believe the balance of earnings risk now lies more to the down rather than upside due to elevated port pricing expectations.</li></ul>

We downgrade our rating on Port of Tauranga (POT) to NEUTRAL from OUTPERFORM to reflect its material recent multiple rerating. POT's one-year forward EV/EBITDA multiple now appears fair on a bond-rate-adjusted basis relative to its trading history, and its EV/IC (of ~1.8x) appears full relative to its current sub-WACC ROIC.While attractive forward earnings growth supports a positive investment outlook for POT, we believe the balance of earnings risk now lies more to the down rather than upside due to elevated port pricing expectations.

Port of Tauranga - Tidal Valuation Shift Closes Multiple Gap