Transurban Tracking In Line With Expectations; No Change to FVE

Wide-moat Transurban announced robust traffic numbers for the March quarter of 2018, placing the toll-road operator on track to meet our fiscal 2018 forecast. We maintain our earnings forecasts and our AUD 11.50 fair value estimate. We forecast high-single-digit top-line growth over the next five years on organic growth, the recent Montreal acquisition, and completion of upgrades and new roads. At the current market price of AUD 11.27, the stock is fairly valued. Solid growth was recorded in…