Update shared on27 Aug 2025
Fair value Increased 2.45%Transurban Group’s consensus price target has been raised to A$14.18, reflecting analysts’ expectations for improved revenue from post-construction traffic growth and easing operational disruptions in key metropolitan markets.
Analyst Commentary
- Upgrade driven by reported traffic growth of approximately 2% in FY25.
- Improved outlook in Sydney and Melbourne expected as construction disruptions wane.
- Stronger performance expected from major metropolitan assets as operational constraints lessen.
- Bullish analysts highlight the company's solid fundamentals post-construction.
- Upward price target revision reflects anticipated revenue uplift from increasing road usage.
What's in the News
- FY26 distribution guidance set at 69cps, implying about 6% growth, with expected Free Cash coverage of 95-105%; ultimate payout subject to traffic and macroeconomic conditions.
- Average daily traffic rose 2.2% for the fiscal year, reaching 2,503,000, reflecting growth across all regions.
- Distribution of 33.0 cents per stapled security announced for six months ending 30 June 2025; DRP to apply with no discount, DRP pricing period based on 10 trading days from 4 July 2025.
Valuation Changes
Summary of Valuation Changes for Transurban Group
- The Consensus Analyst Price Target has risen slightly from A$13.87 to A$14.18.
- The Net Profit Margin for Transurban Group has significantly risen from 18.12% to 21.52%.
- The Future P/E for Transurban Group has significantly fallen from 73.57x to 64.17x.
Disclaimer
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