Morningstar reinitiates coverage of Australia's Link Administration

Link Administration Holdings

21/09/2023 21:22

** Analysts at Morningstar reinitiate coverage on Link
Administration Holdings  LNK.AX  as co is refocusing on growing
its core retirement and superannuation solutions and corporate
markets businesses
    ** Brokerage gives fair value estimate of A$1.50 and "high"
uncertainty rating 
    ** Morningstar sees earnings to be driven by growth in
retirement accounts, cost-cutting and higher interest rates
after extended period of historical lows
    ** "Link's capital-light business model and high recurring
fee revenue should support a sound balance sheet and regular
dividends" - Morningstar
    ** Brokerage expects underlying EPS to be relatively flat
over five years to fiscal 2028
    ** Two of six analysts rate the stock "buy" or higher, one
"hold" and three "sell" or lower; their median PT is A$1.68 -
LSEG data
    ** LNK stock has fallen 29.4% YTD, as of last close

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((Shivangi.Lahiri@thomsonreuters.com;))