Transurban saw a -4% decline in earnings and a -12% decline in free cash flow in the first half but both results were actually better than Morgans expected. The dividend had already been disclosed.

Transurban has a high quality toll road portfolio that provides long-dated resilient cash flows with leverage to a covid recovery, the broker notes.

The broker's Add rating is not predicated on this result. It is based on taking the opportunity at current prices to buy a stock that in normal times frequently traded at or above net present value. Target falls to $14.29 from $14.57.

Sector: Transportation.

Target price is $14.29.Current Price is $12.96. Difference: $1.33 - (brackets indicate current price is over target). If TCL meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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