After a hiatus on providing a rating and target due to restriction, Credit Suisse reinstates coverage with a Neutral rating and $5.40 target. After tax proceeds from a PEXA sale is estimated to account for $2 per share.
The value of the company’s 44% stake could be crystallised in the near-term due to the ongoing sales process, explains the broker.
The analyst highlights the core business (ex-PEXA) continues to face challenging conditions. It’s considered to be operating in some markets which are highly competitive, lack true scale and facing regulatory pressures.
Sector: Software & Services.
Target price is $5.40.Current Price is $5.12. Difference: $0.28 – (brackets indicate current price is over target). If LNK meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
