Computershare: Stripping it back
About the author:
- Author name:
- By Richard Coles
- Job title:
- Senior Analyst
- Date posted:
- 03 May 2023, 7:30 AM
- Sectors Covered:
- Insurance, Diversified Financials
- Computershare (ASX:CPU) has given a market update as part of a broker conference.
- On guidance, FY24 margin income guidance has been downgraded to US$860m from US$990m on lower bond yields, which equates to a ~10% downgrade to FY24 EPS.
- We expect CPU’s decision to simplify its business into three core operations - Issuer Services, Corporate Trust, and Employee Share Plans - should be broadly well received by the market.
- We make nominal changes to our FY23F EPS, but lower FY24F EPS by ~10% on reduced margin income assumptions. Our Price Target falls to (login to view).
- With >10% share price upside to our valuation, we maintain our ADD recommendation.
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