KEY POINTS:
Brokerage First NZ Capital has downgraded Port of Tauranga to underperform from neutral, citing a rise in its share price.
The broking firm said the port operator's share price has risen 8.8 per cent since March 5, compared with a 3.4 per cent rise in the benchmark top 50 index.
Port of Tauranga's shares closed yesterday on $6.45, equalling a record high.
"The downgrade reflects price performance and bears no connection to the potential strike action or potential for merger with Ports of Auckland," analyst Rob Bode said in a research note.
Yesterday, a union representing harbour pilots announced a two week strike beginning May 8, for higher pay.
On March 30 Port of Tauranga withdrew from merger talks with its larger rival, privately held Ports of Auckland, although many analysts considered the move a short-term setback.
If the two ports merged, they would handle two-thirds of the country's cargo and have a value of around $1.6 billion.
- REUTERS
