Transurban Group's September update has reported a -12% year-on-year decline in average daily traffic, but Ord Minnett notes given improving vaccination rates and reduced restrictions conditions are likely to improve significantly. 

Unsurprisingly, average daily traffic in Sydney and Melbourne was even lower, at -45.5% and -30.7% respectively, but Sydney already reported momentum across September and October as lockdown ended and a similarly quick recovery is expected in Melbourne.

The Buy rating is retained and the target price increases to $16.30 from $16.20.

Sector: Transportation.

Target price is $16.30.Current Price is $13.75. Difference: $2.55 - (brackets indicate current price is over target). If TCL meets the Ord Minnett target it will return approximately 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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