Transurban Group has sold down a 50% stake in Express Lanes (US), in advance of potential investment opportunities both domestically and in the US.
The gross proceeds of US$2.1bn (US$1.9bn post-tax) and potential earn-out of up to US$70m (between FY24-26) was ahead of Morgans expectations.
Morgans believes realising significant value for assets, whose earnings are currently under significant pressure, improves balance sheet capacity during a period of weakened traffic.
The Hold rating is maintained and the target price is decreased to $14 from $14.11.
Target price is $14.00.Current Price is $14.27. Difference: ($0.27) – (brackets indicate current price is over target). If TCL meets the Morgans target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).