Transurban's Deal May Weigh Slightly on FY28, FY29 Distributions
Dow Jones
39 mins ago
2220 GMT - Transurban's A$4.5 billion acquisition of Canada Pension Plan Investment Board's stake in companies that own the Westlink M7, NorthConnex and WestConnex highways in Sydney could have implications for its distribution, suggests Jefferies. The deal is likely to be beneficial over the longer term, analyst Anthony Moulder says. He notes the price paid is largely in-line with 2027 valuations. "However, this acquisition is expected to be a small drag to distribution growth in FY28 and likely FY29," Jefferies says. It retains a hold call on Transurban's stock. "Trading on a FY27 yield of 5.4%, we continue to await a more attractive entry point," Jefferies says. Transurban ended Thursday at A$13.01.
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