LNK - Deutsche Bank rates the stock as Hold
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The recent federal budget indicates the Australian government wants to consolidate inactive small accounts with the Australian Taxation Office acting as administrator.
There are 26.5m super accounts in Australia and Link is the largest funds administration business, with 9.3m customer accounts. Of this, Deutsche Bank calculates, there are 2.6m inactive customer accounts.
At this stage, the broker is uncertain just how many customers may transfer to the ATO and, hence, retains a Hold rating. Target is $7.70.
Sector: Software & Services.
Target price is $7.70.Current Price is $6.98. Difference: $0.72 - (brackets indicate current price is over target). If LNK meets the Deutsche Bank target it will return approximately 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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