This might help you a little. I'm definitely biased and see it as a great LT hold/buy if you're not too worried about timing the price to perfection. From Eureka Report's collected wisdom
Transurban has plenty going for it to drive growth in the years ahead after what has been a stellar performance in 2013-14, newsletters say.
Shares in Transurban edged up 0.4% to $7.58 last Thursday (July 10, 2014) after the company released its traffic and revenue data for the fourth quarter. Proportional revenue (which the company believes more accurately reflects its performance) increased by 11.8% to $286.7 million compared to the same period last year.
While newsletters remark the quarter was softer than the full year – in which proportional toll revenue lifted by 12.6% to $1.16 billion – they say the performance was strong given the unfavourable timing of Easter and Anzac Day.
Newsletters almost unanimously recommend buying Transurban after the updates because of the company’s multiple growth fronts from its acquisitions and asset enhancements.
This contrasts with the last time Collected Wisdom covered the stock in April when consensus was to hold as several sources were cautious about the company having to raise a lot of equity to purchase Queensland Motorways.
Despite Transurban’s shares rallying hard since then – even after dipping to a low of $7.10 in May following the announced $2.7 billion capital raising associated with the acquisition – newsletters are far more positive towards the stock.
While Transurban’s organic growth should moderate going into 2014-15, the completed acquisitions of Queensland Motorways and The Cross City Tunnel will boost total growth, sources say, along with the widening of the M5, the delivery of the I95 Express Lanes and the development of the NorthConnex project in Sydney.
However, the stock has continued to climb since newsletter responses, hovering at $7.71 on Tuesday’s close – just 1% below the average 12-month target price of $7.79.
Transurban also has an expected yield of 5.1% in 2014-15, with dividends historically franked at around 20%.
Investors are generally advised to buy Transurban at current levels.
TCL Price at posting:
$7.73 Sentiment: None Disclosure: Held
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