Just based on the over reaction to the ACCC preventing them taking over EastLink.
The Transurban SP seems to have been hit by the ACCC stopping them buying EastLink.
I think the SP drop is an over reaction. So I think it will head up again in the short / medium term,
I also note that most of the Transurban tolling concessions have built in CPI protections and well as a minimum floor rate (from memory i think CityLink was around 4%). And demand continues to grow for the use of their tollroads.
I am a bit confused what Transurban does from here. There are a few Australian tollroads comiung up that they could try to bid/buy. But I think they will have to look elsewhere. They used to have a large USA focus. I used to know Ken Daley that ran it. But he left years ago. And I don't seem to hear much what their future plans are.
I know that Scott Charlton (the ex CEO) really focused on maximising the all parts of their current assest. So it will be interesting to see what they new CEO will do.
Anyone have any thoughts on Transurban?
Dividend payouts are continuing their upward trajectory again after crashing 50% from 2019 into 2020 thanks to the pandemic. A payout of $0.26 is still below 2019 numbers but is showing that traffic is normalising after a hectic couple of years.
Transurban has the ability to pass on price rises onto their tolls given their prices are tied to inflation which in my opinion makes them a solid investment in a high inflationary environment like the one we are currently experiencing.