Brookfield Infrastructure Partners: Delay In Intel Project Is A Key Risk (Archive)
Intel fab delays risk extending BIP’s capital payback despite attractive near-trough valuations.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- Brookfield Infrastructure Partners is positioned well to grow capital deployments, upon which it earns solid returns of 12-14% IRR. This is driven mostly by Data Transmission & Storage activity.
- But its project with Intel corresponding to 38% of BIP's incremental capital to be commissioned has already suffered a 2-3 year delay and I believe further postponements are a risk.
- Further delays would not bode well for BIP investors, as it would elongate the payback period on the investments.
- Valuations are attractive as the stock is trading near decadal 1-yr fwd P/AFFO lows.
- Relative technicals vs the S&P 500 signal caution as the ratio prices are near a key weekly resistance level.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
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