First half results were broadly in line with UBS estimates. Some of the cyclical benefits will roll and a further step down in margin income is expected in FY22.
UBS finds there is little management can do about the difficult operating environment and therefore a focus on cost remains critical.
The stock is not expensive but the broker assesses growth in earnings per share is negative over the short term. Neutral retained with a target price of $15.
Sector: Software & Services.
Target price is $15.00.Current Price is $14.55. Difference: $0.45 – (brackets indicate current price is over target). If CPU meets the UBS target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
