Citi flags potential cash flow pressure for Australia's Transurban; stock down

Transurban Group TCL.AX falls 0.8% to A$14.25

Toll operator announces plans to lay off ~300 positions

Citi sees the job cuts as continuation of co's cost control initiatives outlined in H1 FY25

Says job cuts should benefit free cash flow growth, dividend in FY26

Adds, "However, we believe the cost cuts may signal preparation for potential cash flow pressure from toll reform in New South Wales"

Retains "neutral", with PT of A$14.3

Stock rated "hold" on avg; their median PT is A$13.78, per data compiled by LSEG

TCL gains 6.5% YTD