Atlas Arteria stock recovers after recent selloff
On Wednesday, Atlas Arteria shares experienced a 5.3% increase, marking a turnaround from a significant 14% decline over the previous month. The positive movement followed weeks of downward pressure on the stock, primarily due to the French government's proposed tax modifications that could adversely affect the company's cash flow.
Atlas Arteria's French toll road business, APRR, constitutes more than 90% of the company's free cash flow before overheads. The French government has suggested raising the TEILD tax from its current 4.6% to 12.2% of toll revenue, with the possibility of extending the TST (temporary supplemental tax) by one year. These potential tax increases would likely lead to decreased distributions to Atlas Arteria shareholders.
The stock's recent decline was attributed to both passive selling, driven by index exclusion, and concerns over the proposed tax changes in France.
Written by urgent.news from Investing.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
