0115 GMT - Computershare's price-to-earnings is well above its 15-year average, suggesting to Morgan Stanley analyst Andrei Stadnik that the stock's re-rating may have come ahead of schedule. He points out in a note to clients that the share-registry provider's margin income--interest earned on cash held for dividends--is likely to fall from 80% of pretax profit to about 65% in fiscal 2026. Stadnik says the stock is more sensitive to rate moves than either banks or insurers, with EPS growth into fiscal 2026 looking limited. MS lifts its target price 18% to A$36.60 but maintains an equal-weight rating on the stock. Shares are up 0.7% at A$42.875. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
February 13, 2025 20:15 ET (01:15 GMT)
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