During the March quarter, Atlas Arteria's traffic numbers fell -16% and toll revenues -13% while in the second half of the month of March, traffic fell -67%. The broker assumes traffic will remains depressed until September and only recover slowly, back to normal in FY22. The company has suspended its interim dividend and withdrawn dividend guidance thereafter.

Atlas fortunately has $340m in cash, which could be used to reduce debt or perhaps make some payments to shareholders, the broker suggests, but value still lies at the current price. On traffic assumptions and adjustments for currency, target falls to $7.21 from $8.12. Add retained.

Sector: Transportation.

Target price is $7.21.Current Price is $5.64. Difference: $1.57 - (brackets indicate current price is over target). If ALX meets the Morgans target it will return approximately 22% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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