CPU - UBS rates the stock as Neutral
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The company has announced the acquisition of Equatex, a European employee share plan administration business headquartered in Zurich. This represents a key growth segment for the company and UBS suggests it should add significant outer year accretion based on synergies across the combined platform.
While the deal does enhance the growth outlook, the broker envisages growth reverting back to the low-mid single digit range. Hence, various limited value appeal on a longer term basis and UBS retains a Neutral rating. Target is raised to $18.45 from $17.40.
Sector: Software & Services.
Target price is $18.45.Current Price is $18.32. Difference: $0.13 - (brackets indicate current price is over target). If CPU meets the UBS target it will return approximately 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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