ALTN: Recent announcement of dividend ensures sustainability on payout – By Fortune Research

<ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We reiterate our Overweight stance on Altern Energy Ltd. (ALTN) with a target price of PKR 67/share. Our target price implies an upside of 34% and a dividend yield of 8%. Recent announcement of interim dividend of PKR 4/share (in line with our expectation) reinforces our view of sustainability in future dividends. In addition to this, any partial settlement of dues from the GoP should be a cherry on top and increase the probability of higher payout. To recall, Rousch Power (subsidiary of Altern energy with 59.98% stake) in a bid to remove its loan covenant, has retired its primary loan by obtaining a long term loan from SCB-UAE. At current levels, ALTN offers a PKR IRR of 15.7% as compared to 10 year PIB yield of 8.2%. Key triggers to stock price in near term...