Australia's Cuscal falls after Morningstar starts coverage below market price
BUZZ-Australia's Cuscal falls after Morningstar starts coverage below market price ** Fintech Cuscal CCL.AX slips 0.6% to A$6.49, shedding gains after surging 2% to a record high earlier in the session
** Morningstar initiates coverage at A$5.8 a share, citing a narrow moat but modest overvaluation
** Investment research firm says Cuscal is a "critical but largely invisible payments utility" and broker says scale and switching costs underpin its moat, with ~4 billion annual transactions and client retention near 99%
** Morningstar forecasts underlying net profit to grow about 11% annually to ~A$77 million ($53.68 million) by FY31, helped by volume growth, others
** However, flags regulation, client concentration and acquisition integration as risks, while a major outage or breach could damage Cuscal's reliability-led franchise
** YTD, stock up 46.8%
($1 = 1.4343 Australian dollars)
(Reporting by Kumar Tanishk in Bengaluru)
((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))
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