Atlas Arteria has announced a series of capital-management initiatives and Morgan Stanley expects a reasonably positive reaction from markets.

The broker observes shareholders of APRR have agreed on targets and transactions which should yield roughly 5c a share in free cash-flow flexibility across 2025 to 2027.

While noting the French Presidential election and budget are wildcards for the broker's thesis, for now an Equal Weight rating and $5.66 target price are applied. This compares with a $6.06 target price in February. Industry view: Cautious.

Sector: Transportation.

Target price is $6.06.Current Price is $5.11. Difference: $0.95 - (brackets indicate current price is over target). If ALX meets the Morgan Stanley target it will return approximately 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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