The Motley Fool

Why this famous broker just upgraded Transurban Group shares

Urban toll road network company Transurban Group (ASX: TCL) has been upgraded to outperform by Macquarie after the Australian government proposed $5 billion of funding to build a rail connection to Melbourne airport on a 50:50 basis with the Victorian government.

Shares in Transurban have bottomed out in recent months, dropping from $11.90 at this time last year to today’s $11.21 with plenty of volatility in between.

The Macquarie broker says the government funding announcement was potentially positive for Transurban and concerns about the airport rail link are “misplaced” with lost volume more than offset by population growth.

Ord Minnett last month labelled Transurban as a buy after the company announced the acquisition of the A25 toll road in Montreal Canada.

Macquarie has a $12.44 share price target on Transurban.

In the overall sector things have been tough for rail freight operator Aurizon Holdings Ltd (ASX: AZJ) whose share price has slipped 16% over the past 12 months, with airport operator Sydney Airport Holdings (ASX: SYD) also struggling to book gains.

Lesser known in the space is transport and logistics player K&S Corporation Ltd (ASX: KSC) who might be one to watch in the future as it begins to make ground steadily.

Japanese Billionaire’s Prediction Will Give You Goosebumps

When a veritable investing and entrepreneurial genius speaks, it pays to listen.

In fact, he's now preparing a $100B "war chest" to invest entirely in this "terrifying" new technology, which could spell huge profits for investors.

Click here to learn about this technology and how you can profit!

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.