Transurban Group's full year earnings came in modestly below Morgan Stanley's expectations, with the broker noting 6% year-on-year proportional revenue growth was somewhat offset by an 11% year-on-year increase to proportional costs.

Morgan Stanley highlights the company closed out the year with free cash of $1,531m, up 20% year-on-year, and notes dividend guidance for the coming year of 53 cents per share equates to 29% year-on-year growth but missed consensus by -11%. 

The Equal-Weight rating and target price of $14.28 are retained. Industry view: Cautious.

Sector: Transportation.

Target price is $14.28.Current Price is $14.16. Difference: $0.12 - (brackets indicate current price is over target). If TCL meets the Morgan Stanley target it will return approximately 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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