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

Here’s why brokers are bullish on the toll road operator’s stock.

| More on:
piggy bank at end of winding road

Image source: Getty Images

Key points

  • The Transurban share price has outperformed the ASX 200 through 2022 so far, gaining more than 13% over the last 2 months
  • And brokers are expecting big things from the company's future
  • They've tipped Transurban's stock as an inflation hedge and are impressed by the company's pipeline and potential dividend growth

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.

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.

More on Industrials Shares

Legs and feet of two people wearing green gumboots standing in a flooded room ready to clean up.
Industrials Shares

Cleanaway share price slides amid revised costs from flood damages

Cleanaway's having to clean up its Ipswich site after the floods.

Read more »

a woman wearing green and sitting in a green room with a green coffee cup puts her hand to her forehead in dismay while looking at papers sitting at her computer.
Industrials Shares

Why the Smartgroup share price is tumbling 12% today

A longstanding top 20 client contract is up in smoke...

Read more »

A man holding a packaging box with a recycle symbol on it gives the thumbs up.
Share Gainers

Close The Loop share price rockets 24% on guidance boost

A more positive outlook for the company has investors biting today.

Read more »

A group of disappointed board members.
Industrials Shares

Johns Lyng share price slides following $13m of insider selling

Johns Lyng provided a share trading and business update today.

Read more »

A man leans out of his car window with a massive smile on his face and waves.
Industrials Shares

‘Too early to brake for the next exit’: What this top broker likes about Transurban shares

Analyst sentiment appears to be bullish on Transurban.

Read more »

military drone with weapons representing electro optic share price
Industrials Shares

Here’s why the Electro Optic share price is avoiding the bloodshed today

Electro Optic Systems announced the successful testing of its directed energy drone defence system.

Read more »

A woman wearing a hard hat holds two sparking wires together as energy surges between them. representing the rising Li-S Energy share price today
Industrials Shares

Why is the Li-S Energy share price powering ahead today?

What's the go with Li-S Energy shares today?

Read more »

Many cars travell on a busy six lane road way with other cars in the background travelling in the opposite direction, going the other way.dway
Share Gainers

What drove the Transurban share price higher on Monday?

Let's check why the toll road operator's performance beat the ASX 200 on Monday.

Read more »