TCL – Morgans rates the stock as Hold

Transurban Group has sold down a 50% stake in Express Lanes (US), in advance of potential investment opportunities both domestically and in the US.

The gross proceeds of US$2.1bn (US$1.9bn post-tax) and potential earn-out of up to US$70m (between FY24-26) was ahead of Morgans expectations.

Morgans believes realising significant value for assets, whose earnings are currently under significant pressure, improves balance sheet capacity during a period of weakened traffic.

The Hold rating is maintained and the target price is decreased to $14 from $14.11.

Sector: Transportation.

 

Target price is $14.00.Current Price is $14.27. Difference: ($0.27) – (brackets indicate current price is over target). If TCL meets the Morgans target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →