Analysts at Jefferies express the possibility of additional obstacles to future acquisitions by Transurban (ASX:TCL) due to a decision by the Australian competition regulator.

The regulatory body recently opposed Transurban’s acquisition of a majority stake in Horizon Roads.

This development, the analysts believe, increases the likelihood of other acquisition plans also being obstructed.

The Australian Competition and Consumer Commission (ACCC) expressed its opposition to Transurban’s plans to acquire a majority stake in rival Horizon Roads, the operator of the EastLink toll road in Melbourne.

Jefferies indicates that this decision is anticipated to affect the company’s capability to continue acquiring new concessions on Australia’s East Coast.

‘However, this has no impact on our valuation’ Jefferies reports.

They upgraded their rating from ‘hold’ to ‘buy’ and raised their price target by 11% to A$14.08.

Among 14 analysts, six rate the stock ‘buy’ or higher, six rate it ‘hold’ and two rate it ‘sell’ with their median price target being A$14.28, according to LSEG Data.

As of the last close, Transurban recorded a decline of 2.5% YTD.

Transurban (ASX:TCL) is a company that operates and develops urban toll road networks in Australia and North America.