Barrenjoey analysts have raised their price target on Australian rail freight operator Aurizon Holdings (ASX:AZJ) to A$3.90 per share from A$3.80 per share.

The shares are currently up by 0.7%.

They have also increased their financial year 2024 revenue estimates to A$4.00 billion from the A$3.85 billion that was anticipated earlier.

Aurizon reported on Monday that its annual revenue had grown to A$3.51 billion from A$3.08 billion a year earlier.

The brokerage attributed the upgrades in revenue and price target to the increasing benefits arising from the current inflationary conditions.

Barrenjoey also pointed out that the 9% EBITDA miss from Aurizon’s coal business was unexpected, causing the company to invest more in non-coal operations.

Out of the 16 analysts that follow the stock, six have given it a rating of ‘buy’ or higher, eight rate it as ‘hold’ and two suggest ‘sell’; the median price target stands at A$3.90 according to Refinitiv data.

The stock had seen a decline of 3.8% this year before its recent rise.

Aurizon Holdings (ASX:AZJ) is an Australian rail freight operator.