CPU – UBS rates the stock as Buy

A volatile market has driven investment and mark-to-market losses to UBS’s domestic insurance and diversified financials coverage in the June half. The broker notes mark-to-market impacts can be considered short-term, but will impact on dividend payments.

The broker noted within its coverage only Computershare, ASX ((ASX)) and Steadfast Group ((SDF)) appear to have avoided mark-to-market losses given the companies have minimal shareholder capital exposed to market risk.

UBS likes Computershare’s skew to defensive segments, recurring revenues and interest rate leverage, and the company remains the broker’s preferred sector pick. The Buy rating is retained and the target price increases to $28.00 from $27.00.

Sector: Software & Services.

 

Target price is $28.00.Current Price is $24.91. Difference: $3.09 – (brackets indicate current price is over target). If CPU meets the UBS target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

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