ASX industrials stock Dalrymple Bay Infrastructure Ltd (ASX: DBI) has performed well this year.
The company owns and operates the metallurgical coal export facility at Dalrymple Bay. It is the world's largest coal export facility, serving the coal-rich Bowen Basin and is an important link in the global steelmaking supply chain.
Since the start of 2025 its share price is up over 20%.
However it has recently stumbled, falling more than 12% since its 52 week high back in August.
Due to the recent fall, broker Morgans now sees the current share price as a value.
Lets see what the broker had to say.
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Upgraded rating
Morgans has kept the price target for Dalrymple Bay Infrastructure the same, however due to the recent share price fall, now has an "accumulate" rating on this industrials stock.
On Tuesday, the broker said:
We upgrade DBI to ACCUMULATE from HOLD given recent share price weakness (albeit has bounced off the share price low) upon the exit of its major shareholder. Forecasts unchanged. 12-month target price remains $4.73/sh.
The broker said it doesn't view the fundamentals of the business and asset as having changed with Brookfield's exit. It views this as attractive given Dalrymple Bay Infrastructure's low risk profile.
Based on yesterday's closing price and the current price target, Morgans anticipates the industrials stock to rise approximately 9.74%.
Healthy financials for this industrials stock
For prospective investors, it's worth noting the Half Year 25 results released late last month from this ASX industrials stock:
- Revenue of $151.1m, up 4.2% on H1-24
- EBITDA of $143.8m, up 5.3% on H1-24
- Statutory net profit after tax (NPAT) of $43.1m, up 17.1% on H1-24
- Announced a Q2-25 distribution of 5.875 cents per security, in line with guidance.
Dalrymple Bay Infrastructure CEO, Michael Riches said:
Dalrymple Bay Infrastructure's H1-25 result continues the strong financial performance of the business, and new revenue initiatives and cost efficiencies implemented over H1-25 will drive further earnings growth through the second half of FY25 as their full year impact is realised.
Dividend upside
Yesterday The Motley Fool's James Mickleboro reported that Dalrymple Bay Infrastructure was amongst the top dividend shares from broker Bell Potter.
The broker anticipates a dividend yield of 5.6% to 6% over the next three years.
This means the stock has an attractive upside in terms of capital gain, but is expected to also bring investors strong passive income in the next few years.
