Morningstar ups fair value estimate for Australia's Transurban on higher near-term earnings

Transurban

31/05/2026 23:46

** Morningstar ups fair value estimate for toll-road operator Transurban Group TCL.AX by 7% to A$14.20
** Investment research firm ups fair value estimate on higher near-term earnings and a slightly lower cost of equity to 7.3%
** Morningstar says fuel shortages are unlikely to hit Australia in fiscal 2026 as imports continue
** Morningstar upgrades fiscal 2026 adjusted EBITDA forecast for TCL by 12% to A$3.12 billion, close to the level prior to its April 2 downgrade
** Morningstar still expects headwinds in fiscal 2027 stemming from the Iran war for TCL, before recovery in 2028; long-term forecasts are mostly unchanged
** High oil prices could accelerate adoption of hybrids and electric vehicles, reducing fuel dependency, and the risk to traffic volumes should fall over time for Transurban, adds Morningstar
** 1 of 14 analysts rate the stock "buy" or higher, 13 "hold"; their median PT is A$13.95 – LSEG data
** YTD, stock up 5.4% as of last close
     
     

(Reporting by Sherin Sunny in Bengaluru)
((Sherin.Sunny@thomsonreuters.com))