CPU – Morgans rates the stock as Add

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Computershare has re-affirmed its FY20 guidance after a number of pandemic-led earnings downgrades with margin income guidance at US$180m.

While the operating environment continues to be difficult, Morgans has noted some positives in the form of growing US mortgage servicing with rising unpaid balances along with a rise in corporate actions and growth in counter-cyclical activity.

The broker leaves earnings forecast unchanged for now, viewing the stock as having long-term value.

Morgans retains its Add rating with a target price of $13.90

Sector: Software & Services.

Target price is $13.90.Current Price is $12.68. Difference: $1.22 – (brackets indicate current price is over target). If CPU meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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