Aurizon Holdings Ltd

L1 Capital has been the most consistent bull on Aurizon, arguing since September 2025 (share price around $3.19) that the market undervalues its irreplaceable rail network assets, which represent over half of company value, and pointing to five drivers of upside: an under-appreciated Network segment (subject to a strategic ownership review), a stable cash-generative Coal business, upside in Bulks and Containerised Freight (helped by a new long-term BHP Copper haulage contract and easing bad-debt provisions), falling growth capex after FY26, and scope for rising shareholder returns via buybacks and dividends. Through late 2025 and into 2026, L1 highlighted a landmark BHP Olympic Dam/Copper contract win, a proposed then confirmed 10-year regulatory extension for Queensland rail network access, a lift in the dividend payout ratio to 90%, workforce cost cuts of $50m, and continued BHP-related bulk haulage opportunities including Arafura/Nolans Bore, becoming Aurizon's largest shareholder and calling it one of the stocks it would most comfortably own for five years given its moat-like, AI-resistant infrastructure. Endeavor Asset Management similarly cited reaffirmed EBITDA and dividend guidance and supportive thermal coal prices, while Wentworth Williamson (before exiting) and Pendal Group flagged asset-sale/network review initiatives and a strong 1H FY26 EBITDA beat with an early payout-ratio increase to 90%. Oracle Advisory Group and Plato Investment Management also framed it as a buy on decent yield and modest growth. Ellerston Capital, Investors Mutual and Argo Investments trimmed or took profits simply on strong share price appreciation rather than a change of view, while Allan Gray sold to redeploy into more contrarian opportunities after its bulk-business concerns had abated.