Computershare has reaffirmed FY20 guidance which Morgan Stanley believes is satisfactory, given weakness in global M&A and interest income. Macro weakness has been offset by mortgage servicing and share plans running ahead of expectations.
The broker suspects, with guidance being updated at the first half results, that the company will pull back from forecasts of flat margin income in FY20, and the earnings risk remains skewed to the downside.
Underweight maintained. Target is $13.00. Industry view is In-Line.
Sector: Software & Services.
Target price is $13.00.Current Price is $16.61. Difference: ($3.61) – (brackets indicate current price is over target). If CPU meets the Morgan Stanley target it will return approximately -28% (excluding dividends, fees and charges – negative figures indicate an expected loss).