Computershare: Stripping it back

About the author:

Richard Coles
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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