ASX:TCL
Transurban Group
Investment Summary
The fund managers believe that Transurban Group (TCL) represents an attractive investment opportunity, especially as its performance has improved relative to the ASX200, leading to a more favorable valuation. They highlight that TCL consists of high-quality long-duration assets with significant pricing power. Recent developments, including the NSW Government's draft in Principle Agreement regarding toll roads, have raised expectations for agreement finalization soon. However, some managers noted the risks associated with political sensitivities towards cost-of-living issues, as underscored by the NSW Toll Review Interim Report, which did not propose any punitive measures for TCL but served as a reminder of potential risks. Overall, in their opinion, while the investment case for TCL appears solid, monitoring these external factors remains crucial for future performance.
Commentary From The Managers
Blackwattle Investment Partners
31 Dec 2024
$13.39
- Blackwattle Investment Partners has been progressively adding Transurban (TCL) to its portfolio.
- Positive underperformance relative to the ASX200 has improved TCL's relative valuation.
- TCL encompasses a range of high-quality, long-duration assets.
- The company possesses significant pricing power.
- A review by the NSW Government into toll roads concluded recently.
- The NSW Government announced a draft in Principle Agreement.
- While details remain limited, Blackwattle Investment Partners anticipates that Transurban and its partners will finalize the agreement shortly.
Blackwattle Investment Partners
31 Mar 2024
$13.26
- Blackwattle Investment Partners continues to hold a cautious stance on Transurban Group (TCL.AX).
- The fund performance was positively impacted by not holding shares in Transurban, which underperformed compared to the broader market.
- The recent NSW Toll Review Interim Report did not propose harsh measures against Transurban’s existing toll concessions.
- This report serves as a reminder of the political sensitivity around cost-of-living issues, reflecting trends observed in other sectors like retail.
- Blackwattle Investment Partners remains attentive to political and economic conditions affecting the infrastructure space.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.