Edison Issues Initiation on John Laing Group (JLG)

LONDON, August 31, 2016 /PRNewswire/ --

John Laing (JLG), listed in February 2015, has a diversified portfolio of investments, by sector and geography, and with an even split of operational projects and assets under construction. We believe that JLG is well placed to capitalise on the future demand for infrastructure and renewable investment and we forecast a total return (NAV and DPS growth) of c 17% (2015-20). This growth should lead to a reduction in JLG's valuation discount.

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UK-listed infrastructure and renewable energy funds currently trade at a weighted average premium to NAV of c 19%. JLG stands at a conservative 4% discount. The discount may in part reflect market indigestion following the distribution of Henderson Equity Partners' (62.6%) shareholding (October 2015), and in part a cautious attitude towards the valuation of primary portfolio assets by the market. Given the growth that we forecast in JLG's NAV and DPS, in particular due to the attractive returns made in the primary investment portfolio, and the diminishing impact over time of the share distribution, we expect this valuation gap to close.  

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All reports published by Edison are available to download free of charge from its website http://www.edisoninvestmentresearch.com.

About Edison: Edison is an international equity research firm with a team of over 110 analysts, investment and roadshow professionals and works with both large and smaller capitalised companies, blue chip institutional investors, wealth managers, private equity and corporate finance houses to support their capital markets activity. Edison provides services to more than 420 retained corporate and investor clients from offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact
Graeme Moyse          
Edison Investment Research        
+44(0)20-3077-5700

Roger Johnston          
Edison Investment Research        
+44(0)20-3077-5722
[email protected]

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SOURCE Edison Investment Research

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