Computershare’s stock slides in wake of FY25 earnings
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The news: Share registry business Computershare saw its stock price decline this morning after reporting a 5.5% fall in full-year revenue and as some analysts raised valuation doubts.
The numbers: At 10:35am AEST, shares in Computershare had slid 3.8% to $39.76.
UBS analysts cut their target price from $41.50 to $41.20 and retained a ‘sell’ rating.
The context: The UBS analysts noted that while the FY25 result and FY26 earnings per share guidance were in line with market expectations, “reported profits continue to lag”. They lowered their price target because they “see limited value upside”.
Morgan Stanley analysts flagged that guidance for FY26 could be viewed as “conservative” by some investors given it is below market consensus. The analysts also said they believe Computershare is “managing its earnings trajectory well given falling margin income contribution, but the stock seems expensive”.
Citi analysts also flagged that “the quality of guidance may be questioned by some” but said they “expect the stock to have some support” as the FY25 results were broadly in-line with expectations and FY26 guidance is “at least in line with expectations”.
The sources: UBS research, Morgan Stanley research, Citi research
