ALX – Macquarie rates the stock as Neutral

Atlas Arteria’s September-quarter update reveals signs of European recovery, although the economy is not quite out of the covid woods, reports Macquarie.

Traffic growth strengthened but revenues softened, reflecting a change in the traffic mix. Telco and other revenue rose E13m. Signs of weakness continue in Germany and the US.

Macquarie says stronger traffic volumes vindicate its forecast for a strong recovery in France, which augurs well for dividends.

But the broker maintains a Neutral rating given the French elections are looming and the main driver of the share price will be the extension of asset life.

Target price is steady at $6.52.

Sector: Transportation.

 

Target price is $6.52.Current Price is $6.47. Difference: $0.05 – (brackets indicate current price is over target). If ALX meets the Macquarie target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

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