UBS names Macquarie Atlas Roads Limited a buy
Global toll road developer and operator Macquarie Atlas Roads Limited (ASX: MQA) was on the S&P/ASX 200 gains list on April 10, with its share price up 3.2% to land at its $6.10 closing price.
UBS has upgraded its rating on Macquarie Atlas to a buy, seeing the company’s agreed terms for internalising management (which come into play in May 2019) as a positive step with the potential to log $8 million in annual cost savings.
The UBS broker said Macquarie Atlas management changes will improve investor sentiment as governance concerns and future performance fee costs are reduced allowing cash flow to improve.
UBS raised its share price target on the stock from $6.65 to $7.10.
Macquarie Atlas looks well-placed to cash in on favourable infrastructure industry conditions, alongside urban toll road player Transurban Group (ASX: TCL) – which has also been on the S&P/ASX 200 gains list this week after Ord Minnett last week labelled it a buy off the back of its $843 million investment in the A25 toll road in Montreal, Canada.
Logistics cousin Qube Holdings (ASX: QUB) has also made gains this week, with its share price up 0.9% on April 10 to land at $2.25.
OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!
Financial year 2018 is here and The Motley Fool's dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.
You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!
Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.
Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Transurban Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.