Transurban Group's first half proportional  earnings (EBITDA) were 1% above Morgan Stanley's estimate and -5% below consensus.

The first half dividend of 15 cents (announced in December 2020) 2020) has 114% free cash cover, calculates the broker. 

Management provided updates on several areas including headroom for future capital releases is at around $2b between FY22-25 and West Gate Tunnel completion is deferred beyond 2023.

Equal-weight and target of $14.50 retained Industry view: Cautious.

Sector: Transportation.

Target price is $14.50.Current Price is $13.27. Difference: $1.23 - (brackets indicate current price is over target). If TCL meets the Morgan Stanley target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena