The Transurban Group (ASX: TCL) share price hit a 52-week high today of $13.75 despite some powerful institutional analysts at Goldman Sachs not being overly enthused about its current valuation.
Transurban is a popular stock with retail, SMSF, and institutional investors alike thanks to its defensive revenue streams and steadily rising dividends. It's forecasting 59 cents per share in dividends over fiscal 2019 to place it on a yield of 4.3% which sounds reasonable, but is below historical averages with the stock at a record high today.
On April 16 the analysts at Goldmans considered Transurban's latest operating update covering its toll road and construction plans in Sydney, Melbourne, Brisbane and the U.S. and couldn't make the current overall valuation stack up.
Goldmans has a 12-month share price target of $13.11 on the stock which is around 5% below what shares change hands for today.
"We have a cautious view on the infrastructure sector in general, given we expect further upward pressure on long bond yields to have a negative impact on defensive yield focused names like Transurban." warns Goldmans.
It it's correct then now may not be the time to pile into Transurban shares.
