Shares in toll operator Transurban Group (ASX:TCL) have fallen as much as 2.4%, poised for their worst day since the 26th of October, if the current trend persists.
According to the toll review interim report that was released on March 11, analysts at Macquarie Capital retain their price target for the stock at AUD 13.69.
The report suggests a new toll model that fails to ensure Transurban and other road investors remain financially viable in the long term.
The review also recommends the decision-making process for tolling should lie with the Independent Pricing and Review Tribunal (IPART), thereby removing the contractual certainty of toll pricing.
As a result, Transurban’s stock has plummeted to its lowest level since February 22nd.
Macquarie analysts have expressed their concerns stating that the proposed model could put Transurban in conflict with the government and may necessitate legal remedies.
According to LSEG data, of the 15 analysts, three rate the stock as a ‘buy’ or higher, ten suggest a ‘hold’ and two recommend a ‘sell’; their median price target stands at AUD 13.51.
Year-to-Date, Transurban’s stock has dipped by 1.9% as per the closing data.
Transurban Group operates toll roads in Australia, Canada and United States and specializes in electronic toll collection.