Analyst Note| Adrian Atkins |
We maintain our AUD 12 per share fair value estimate for Transurban after it agreed with the Victorian Government to split the bill 50:50 for the West Gate Tunnel cost blowout. The AUD 2 billion cost to the wide-moat firm is about AUD 300 million higher than we previously factored in. Additionally, the project timeline has slipped again, with completion now expected in late 2025, three years later than the original schedule and one year later than we previously factored in. While both are negative, they are small in the scheme of things.