LNK – Morgan Stanley rates the stock as Overweight

Morgan Stanley upgrades its rating for Link Administration to Overweight from Equal-weight on valuation support.

The broker believes the company’s assets are strategically attractive at current valuation levels, as indicated by the current  $5.50 Dye & Durham offer and several other past offers for parts of the business.

The  target price falls to $4.40 from $5.50 on a sum-of-the-parts calculation, while FY23 earnings (EBITDA) estimates falls by -4%. Industry view: Attractive.

Sector: Software & Services.


Target price is $4.40.Current Price is $3.55. Difference: $0.85 – (brackets indicate current price is over target). If LNK meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).


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