Morgan Stanley reminds us Computershare has the greatest interest rate exposure under its coverage and rising interest rates in the US and UK could boost margin income. The potential benefit is not baked into the broker's forecasts as yet.

Additionally, higher rates are a tailwind for mortgage servicing, as they dampen refinance activity and increase foreclosure opportunities. The latter is considered a second half 2022 story, given the moratorium on foreclosures until December 2021.

The Overweight rating and $17.90 target price is unchanged. Industry view is In-Line.

Sector: Software & Services.

Target price is $17.90.Current Price is $16.33. Difference: $1.57 - (brackets indicate current price is over target). If CPU meets the Morgan Stanley target it will return approximately 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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