Computershare falls on UBS downgrade
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The news: Shares in Computershare lowered in early trading on the ASX after UBS downgraded its rating on the share registry firm.
The numbers: Computershare was down 1.74% to $34.50 by 10:18am AEDT. Over the past 12 months its shares have soared over 40%.
UBS downgraded Computershare from 'buy' to 'neutral' but raised its price target 13% from $32 to $36.15.
The context: UBS analysts noted the company's shares were up over 30% during the two months following the US election, fuelled by a stronger-for-longer interest rate outlook and a stronger US dollar.
However, the analysts see more moderate medium-term growth and a limited value appeal on the stock.
A stronger rebound in capital markets activity in the longer term is more likely to coincide with a lower interest rate outlook, they said, making Computershare's net earnings upside increasingly reliant on deploying balance sheet capacity.
The source: UBS research
