LNK - UBS rates the stock as Upgrade to Buy
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Despite consistently delivering earnings that are ahead of expectations the shares steadily de-rated, UBS observes, amid concerns about stagnant funds administration revenue and the recent acquisition.
Nevertheless, UBS suggests super account consolidation headwinds will ease and the company's low fees versus the industry set it up to be the beneficiary of mergers.
UBS envisages compelling value in what it describes as a defensive and highly cash generating financial infrastructure exposure. Rating is upgraded to Buy from Neutral. Target is raised to $8.85 from $8.55.
Sector: Software & Services.
Target price is $8.85.Current Price is $7.39. Difference: $1.46 - (brackets indicate current price is over target). If LNK meets the UBS target it will return approximately 16% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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