Transurban has not escaped the broad market sell-off and Citi's expected total return has risen to 15.7% on the weaker share price. This triggers an upgrade to Buy.
Transurban is exposed to defensive assets in a tough macro environment and offers an attractive yield and distribution growth, Citi notes, along with a pipeline of growth options. Target unchanged at $10.56.
Target price is $10.56 Current Price is $9.51 Difference: $1.05
If TCL meets the Citi target it will return approximately 11% (excluding dividends, fees and charges).
The company's fiscal year ends in June. Citi forecasts a full year FY16 dividend of 44.50 cents and EPS of 19.10 cents. At the last closing share price the estimated dividend yield is 4.68%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 49.79.
TCL Price at posting:
$9.74 Sentiment: Hold Disclosure: Held
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