** Citi initiates coverage on international toll road operator Atlas Arteria with "Buy" rating at price target of A$5.80

** Brokerage says ALX is attractive due to its 8% dividend per share yield and projected strong free cash growth of 14-15% in FY24-FY25

** Citi considers the stock undervalued, as it's priced at an implied 5-7x EV/EBITDA, a ratio comparing the company's value including debt to its cash earnings

** Citi sees potential value increase from ending profit distribution restrictions at Dulles Greenway in the U.S. and a possible company acquisition

** Brokerage flags caution on potential additional taxes on APRR, a French toll road in which ALX owns a ~30% stake, which could impact profitability

** Stock has lost ~16.4% so far this year as of the last close

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com;))