- EQT likes Transurban for its exposure to a high quality defensive distribution stream and has a 12-month price target of $8.80 on the stock.
- NAOS Asset Management believes Billabong can get back to being one of the best retailers in Australia and has a price target of $1.20 on the stock.
Paul Kasian, head of asset management at Equity Trustees on Transurban Limited (TCL).
How long have you held the stock?
We’ve had an overweight position versus benchmark since June 2013.
What do you like about it?
Transurban is a toll road developer and operator that provides exposure to a high quality defensive distribution stream, through their portfolio of toll roads across eastern Australia as well as two toll roads in Virginia, USA. The company also has the capacity for growth over the medium term as current expansion projects ramp up. The business has been de-risked post the GFC and is able to support its distribution from internally generated cash.
Transurban (TCL)
Source: Yahoo!7 Finance, 4 December 2014
How is it better than its competitors?
The company has extensive experience in developing and operating toll roads since 1996. In addition, it is the only major toll road operator listed on the ASX with a diversified portfolio of Australian assets and a yield above 5%.
What do you like about its management?
Experienced senior management and board have taken a disciplined approach to investing capital and have delivered consistent earnings growth and strong shareholder returns since listing in 1996.
What is your target price on Transurban?
Around $8.80 in the next 12 months.
At what point would you sell it?
We will look to review our position if the current expansion projects start to wind down with no replacement growth projects.
How much has it added to your overall portfolio over the last 12 months?
Transurban is up around 15.7% over the past year and, not surprisingly, has outperformed the broader ASX 200 benchmark, which is flat over the same time period.
Is it a liquid stock?
Yes. It is a very liquid infrastructure stock for both global and domestic investors.
