A more detailed disclosure released late last year by Computershare has provided much needed improved earnings visibility for investors. UBS has upgraded modeling on the company accordingly, and notes an expected earnings recovery is ahead.
The recovery should be supported by the integration of the Computershare Corporate Trust, with the broker expecting the company will benefit from an earnings spike in FY24 as integration costs complete.
The rating is upgraded to Buy from Neutral and the target price increases to $22.50.
Sector: Software & Services.
Target price is $22.50.Current Price is $19.76. Difference: $2.74 – (brackets indicate current price is over target). If CPU meets the UBS target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
