Morningstar holds steady on Australia's Transurban despite quarterly traffic growth
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Toll-road operator Transurban TCL.AX reported a 1.8% rise in average daily traffic volumes for the March quarter y/y
Morningstar says that volumes align with expectations
Notes a strong recovery in North America, with traffic up 3.8%
Adds, rising demand enables significant toll increases on U.S. Express Lanes (EL)
However, Morningstar flags volatility in U.S. EL earnings, saying that those roads face competition from adjacent free lanes but can do very well when competing lanes are congested
Maintains fair value estimate of A$13/security
Stock up 6.7% YTD
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