Citi puts Australia's Computershare on positive catalyst watch ahead of AGM

Citigroup

26/10/2026 19:46

** Citi places Computershare Ltd CPU.AX on positive catalyst watch, expecting the company to share positive updates at its November 12 AGM
** Brokerage expects CPU to at least reaffirm its FY27 earnings growth target of 6%, with some chances of a modest upgrade
** Citi thinks Computershare's FY27E margin income is tracking slightly ahead of expectations, helped by an earlier-than-expected September US rate hike and by higher balances from corporate actions and debt issuance
** However, Citi says near-term earnings benefit is likely 
limited because about 60% of the book is hedged and incremental funds may earn lower yields
** Brokerage sees the company reaching net cash by H127 or having about $3.3 billion of debt capacity for acquisitions
** Citi retains "neutral" rating and unchanged PT of A$43.20
** YTD, stock up 26.2%, as of last close

 (Reporting by Paridhi Minda in Bengaluru)
 ((Paridhi.minda@thomsonreuters.com;))