Atlas Arteria shares drop after flat Q3 toll revenue

The news: Shares in Atlas Arteria dropped lower in afternoon trade after the toll road operator reported a 0.1% rise in proportionate toll revenue for the three months to 31 March.

Shares fell 1.64% to $4.21 at 12:39pm AEST.

RBC Capital Markets analyst Owen Birrell maintained a sector perform rating on the stock, with a price target of $5, saying the company has historically shown underlying resilience to fuel shocks.

The context: Atlas said performance was mixed during the period. Traffic on its French highway APRR fell 0.9% year on year due to weaker light vehicle traffic volumes, while Chicago Skyway saw the reverse trend. The Dulles Greenway and A79 continued to outperform.

The company said it would continue to monitor the impact of fuel costs amid the ongoing Middle East conflict, adding it has a lower exposure to supply disruptions compared to Australia. Most of its roads are CPI-linked, so the impact of higher fuel costs and inflation would take time to flow through.