Atlas Arteria (ALX) was established following the Macquarie Infrastructure Group (MIG) split. The company’s two main international toll road assets are Autoroutes Paris-Rhine Rhone and Chicago Skyway. The latest traffic and toll revenue have not changed our outlook. Following several months of share price weakness, we see some valuation support, particularly from a yield of ~7.8%. It will take until FY27 before the underlying cash flow supports dividend growth, but it’s healthy enough already. This has been a “dividend trap” over recent years, and we’re not keen to buck the trend even with rates set to pivot.
- We still prefer TCL over ALX even after the recent underperformance of ALX.
MM is neutral towards ALX
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