Computershare Ltd
CPU: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$63.70 | Ynbcf | Ynfyrcrn |
Computershare’s Weak First-Half Result Not Reflective of Brighter Long-Term Outlook
We have maintained our earnings forecasts and AUD 19.40 fair value estimate for narrow-moat-rated Computershare despite its weak first-half result. Importantly, management maintained fiscal 2020 earnings guidance, implying a 5% fall in management EPS, which is broadly in line with our forecasts. The share price has performed well recently, rising 17% over the past six months to AUD 17.63, but we still believe the stock is undervalued.