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).