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This $45 billion ASX 200 share just hit a new multi-year high. Can it keep going?

Transurban shares have hit a new watermark.
The post This $45 billion ASX 200 share just hit a new multi-year high. Can it keep going? appeared first on The Motley Fool Australia. –

The Transurban Group (ASX: TCL) share price was rangebound yesterday and finished the day at $14.72 apiece. This extends the month’s gains to more than 1.3% and a 52-week high.

Zooming out, the ASX transport share now trades at its highest level in more than 2 years. It nudged this level briefly in 2021, before quickly receding below the neckline.

As such, Transurban has nudged to another multi-year high and the question now becomes if it can keep up the pace.

Returns for the share versus the benchmark S&P/ASX 200 Index (ASX: XJO) for the past 5 years are plotted on the chart below.

Can Transurban push higher?

Analysts at Bell Potter reckon it can and recently affirmed their buy rating in a recent note to clients. In the release, Bell Potter reckons there are large opportunities on the horizon for the toll road giant.

The company’s “current pipeline of growth projects is $3.9 billion,” the broker said.

“[F]urther huge development opportunities are expected over the next few decades supported by population and economic growth” are also expected to be key drivers of the share price.

Meanwhile, more than 42% of brokers reckon Transurban is a buy right now, according to Refinitiv Eikon data.

However, 50% also say it’s a hold with the remainder urging clients to sell.

From this list, the consensus price target is $14.21, suggesting that the Transurban share price might have difficulty climbing higher if the group is correct.

One fund manager is positioned in TCL to capture a return from the current trends in inflation.

As TMF reported in July, “Atlas Funds Management chief investment officer Hugh Dive has named Transurban as one of three companies that could do quite well in a high interest rate environment.”

According to the Australian Bureau of Statistics (ABS), the consumer price index – Australia’s primary measure of inflation – increased 6.1% over the 12 months to 30 June.

Hence, if the relationship between the Transurban share price and upturns in inflation turns out to be true, that’s certainly something to think about.

In the last 12 months, the Transurban share price has clipped a 4% gain as well as 6% this year to date.

The post This $45 billion ASX 200 share just hit a new multi-year high. Can it keep going? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Transurban Group right now?

Before you consider Transurban Group, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Transurban Group wasn’t one of them.

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See The 5 Stocks
*Returns as of July 7 2022

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More reading

3 ASX 200 shares smashing new 52-week highs on Thursday
Broker names 3 ASX 200 shares to buy and hold
When inflation = profit: Why this fundie is tipping the Transurban share price to outperform
Expert prediction: 3 ASX 200 shares that can ‘do well’ in volatile times
3 ASX shares for ‘predictability’ through tough times: expert

Motley Fool contributor Zach Bristow 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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