Transurban share price falls

Transurban's recent share price fall calls for a change of recommendation.

Toll road operator Transurban's share price has fallen 10% since Transurban: Result 2016 on 10 Aug 16 (Sell – $11.79). Management expects to make total distributions of 50.5 cents in 2017 (up 11%), for a forward partially franked dividend yield of 4.8%. As a regulated monopoly, Transurban has many competitive advantages and its inflation-protected revenue is a bonus. There are better opportunities on our current Buy list, but with Transurban's share price having moved below our recommended Sell price, we're upgrading to HOLD.