Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • An analyst has issued an Outperform rating on Infratil with a target price of NZD 13.26, 5.32% above the current share price.
  • CDC’s independent valuation rose by AUD 77 million during the September quarter, reaching AUD 13.6 billion.
  • Infratil’s 49.72% interest in CDC is now valued at AUD 6.78 billion, up AUD 32 million since June 2025.

Macquarie Research’s analyst Stephen Hudson has issued an Outperform rating for Infratil Limited (NZX:IFT) with a target price of NZD 13.26. The target implies a potential upside of 5.32% from the company’s latest trading price.

CDC Valuation Increases During the Quarter

The independent valuation as of 30 September 2025 records an increase of AUD 77 million from the previous quarter, bringing CDC’s total value to AUD 13.6 billion. The valuation sits at the midpoint of the assessed range of AUD 12.8 billion to AUD 14.5 billion.

Following this update, Infratil’s 49.72% interest in CDC is now valued at AUD 6.78 billion, up from AUD 6.75 billion on 30 June 2025. The valuation was prepared by a newly appointed independent valuer, in line with policy requiring periodic rotation of external valuers.

Operational Progress and Pipeline Growth

CDC’s quarter was marked by key milestones, including expansion plans for a new data centre region in Perth, Western Australia, and securing approximately 100MW of additional contracted capacity.

Minor adjustments to operational plans were reflected in the valuation, alongside technical updates from the new valuer. The cost of equity used in the valuation increased slightly to 11.38%, up 0.33 percentage points from June’s 11.05%, primarily due to changes in the method used to calculate gearing. This was partially offset by a reduction in the Asset Specific Risk Premium.

Continued Investment Commitment

The growth outlook supporting CDC’s build program through FY34 remains consistent with previous projections.

Infratil expects to commit approximately AUD 250 million over the next six months to support CDC’s ongoing development pipeline and expand its operational capacity across existing and new markets.