Computershare’s December-half result outpaced expectations and management increased earnings (EBIT) growth guidance to 13.1% from 3.7%, notes Macquarie.
Margin guidance for FY22 rose to $152m from $145m and costs guidance was stable.
Macquarie raises FY22 EPS forecasts 9.1% and FY23 EPS estimates 13.6%. Target price rises to $25 from $22.
Outperform rating retained, the broker noting Computershare is set to take advantage of rising yields, which, combined with cost-cutting programs, a rallying in US Mortgage Services and the Wells acquisition, augurs well for the company.
Sector: Software & Services.
Target price is $25.00.Current Price is $22.94. Difference: $2.06 – (brackets indicate current price is over target). If CPU meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
