Port of Tauranga (NZE:POT) is expected to deliver strong earnings growth over the next two years as significant tariff increases support returns on major infrastructure investments, though valuation remains stretched and demand risks persist, Jarden said in a Thursday note.
Jarden said the company's fiscal year 2027 tariff schedule confirms "meaningful" price increases, with container revenue per twenty-foot equivalent unit expected to rise 11% and breakbulk and marine service pricing up about 6%, driven by higher landside charges and infrastructure levies linked to berth expansion and automation projects.
Jarden expects return on invested capital on operational assets to rise to 6.9% in fiscal 2027 from 5.3% in fiscal 2025, close to its 7% target, and said the wharf extension remains on track, with a regulatory decision due by Sept. 7.
The investment firm has maintained its fiscal year 2026 earnings guidance, slightly reduced fiscal year 2027 estimates by 1%, and lifted fiscal year 2028 forecasts by 3%, projecting net profit after tax of NZ$146.6 million in fiscal 2026 and NZ$176.7 million in fiscal 2027, mainly supported by higher pricing.
Jarden maintained its underweight rating on Port of Tauranga and increased its price target to NZ$7 from NZ$6.54.