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).
