The Transurban share price has leapt 13% in 2 months. Too late to buy?

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The Transurban Group (ASX: TCL) share price has hit its stride over the last 2 months.

At the time of writing, the Transurban share price is $14.15, 13.2% higher than it was two months ago and 1.5% higher than it was at the start of 2022.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained just 1% over the last 2 months and it’s fallen 6% year to date.

But does the stock have the potential to go higher? Let’s take a look at why brokers think the toll road operator has a green future.

Does the Transurban share price offer more upside?

The Transurban share price has been outperforming the ASX 200 in 2022.

Plenty of stocks have been suffering this year, with many impacted by rising inflation and Australia’s first rate hike in years.

In fact, the S&P/ASX 200 Index (ASX: XJO) has slumped nearly 5% over the last 30 days. Meanwhile, the Transurban share price has continued its upward momentum. It has lifted 3.6% in that time frame.

And brokers expect its strong run to continue into the future.

Macquarie Group Ltd (ASX: MQG), Bell Potter, and Morgans see plenty of potential for upside in the toll road operator.

As The Motley Fool Australia’s Brendon Lau reports, Macquarie has tipped Transurban as an inflation hedge, saying it has pricing power built into its contracts.

Bell Potter is also bullish on the stock, but for different reasons. The broker expects the stock to beat the market over the long term, driven by its development pipeline.

The group’s current pipeline of growth projects is $3.9 billion … and further huge development opportunities are expected over the next few decades supported by population and economic growth.

Bell Potter, as quoted by my Fool colleague, James Mickleboro.

Finally, Morgans expects the company’s dividends to grow to 60 cents per share in financial year 2023. It also slapped Transurban shares with a $14.42 price target, reports Mickleboro.

The post The Transurban share price has leapt 13% in 2 months. Too late to buy? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Transurban right now?

Before you consider Transurban, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Transurban wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia

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