The company has sold its corporate & private clients business to Apex Group for GBP240m. UBS does not believe the transaction will have a material bearing on the outlook.
Management expects the sale will allow Link Asset Services to focus on other divisions where technology and other solutions can be more readily applied to drive growth.
As the Brexit exposure is also tempered and balance sheet options are restored earlier than expected, UBS reiterates a Buy rating. Target is reduced to $8.90 from $9.05.
Sector: Software & Services.
Target price is $8.90.Current Price is $7.14. Difference: $1.76 – (brackets indicate current price is over target). If LNK meets the UBS target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).