Edison Investment Research Initiates Coverage on International Public Partnerships (INPP)

Edison Investment Research Limited has started its coverage on International Public Partnerships (INPP), emphasizing the firm's capability to deliver "consistent and predictable returns" for its investors. According to the recent FY23 results, INPP continues to benefit both individuals and communities through its assets by providing environmental and social advantages. The report highlights a significant opportunity in private infrastructure funding, although INPP's share price has been affected by the broader macroeconomic situation and rising interest rates.

The analysis reflects INPP's resilience in higher inflation scenarios and its protective measures against increased interest rates, showcasing an 18% discount to NAV which aligns with the industry average. Despite this, Edison suggests the comparison might not fully reflect INPP’s portfolio strengths or its historical performance. Looking ahead, INPP has set a FY24 target DPS of 8.37p, projecting a 6.7% yield and affirming the ability of existing cash flows to support progressive dividends for the next two decades without additional investments. This setup positions INPP for a net return of 9.4% considering its discounted share price against an 8.4% expected NAV return.