Computershare: Completing a key plank of the business rationalisation

About the author:

Richard Coles
Author name:
By Richard Coles
Job title:
Senior Analyst
Date posted:
04 October 2023, 7:30 AM
Sectors Covered:
Insurance, Diversified Financials

  • Computershare (ASX:CPU) has announced the sale of its US Mortgage Services Business (CLS) for US$720m.
  • We are positive on the update here, with a full CLS business exit being achieved at what appears a reasonable sale price. We think returned capital from CLS will be better deployed in a more value accretive way elsewhere.
  • We make nominal changes to our CPU FY23F EPS, but lift FY24F EPS by ~5% reflecting the sale of CLS. Our PT rises to (login to view).
  • After a solid recent share price rally, CPU is moving closer to fair value, in our view. However, with >10% to our price target, we maintain our ADD call at this stage.

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