Citi says Computershare FY27 outlook broadly in line, hikes target price
BUZZ-Citi says Computershare FY27 outlook broadly in line, hikes target price ** Citi says Australia's Computershare's CPU.AX FY26 result was broadly in line with market expectations, supported by stronger-than-expected margin income
** Sees CPU's initial FY27 management EPS growth forecast of about 6% broadly in line with expectations and modestly conservative
** Computershare, which provides share registry software services, could become net cash positive by the end of FY27 or early FY28, potentially supporting a higher dividend payout - brokerage
** Citi makes largely compositional changes to FY27 view and lifts FY28 EPS estimate by 2%
** Retains "neutral" rating; raises target price to A$43.20 from A$40 on updated earnings forecast
** Says the result should support the share price, though not be enough on its own to drive a material re-rating of the stock
** Shares up nearly 25% YTD
(Reporting by Rajasik Mukherjee in Bengaluru)