Morgans observes Computershare's 1H EPS was broadly in line with the consensus forecast, while FY24 guidance was reaffirmed for Management EPS growth of 7.5% on the previous corresponding period.

Underlying results benefited from an improvement in overall event and transactional (E&T) activity, particularly Employee Share Plan and Stakeholder Relationship Management activity, explains the broker.

The Add rating is maintained and the target rises to $28.65 from $27.21 after the broker makes minimal near-term EPS forecast changes, but rolls-forward the valuation model. Long-term EBIT margin estimates were also increased.

Sector: Software & Services.

Target price is $28.65.Current Price is $26.29. Difference: $2.36 - (brackets indicate current price is over target). If CPU meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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