Computershare's 1H management profit was a -3% miss versus the consensus forecast, while the interim dividend of 30cps was well adrift of the 35cps expected.

While the analyst concedes 15.5% return on invested capital (ROIC) for the period was clearly strong, a -40% decline (versus the previous corresponding period) in group earnings (EBIT) - ex margin income - was a key negative.

Management reaffirmed FY23 EPS growth guidance of around 90% on the previous corresponding period, while margin income guidance was raised to $810m from $800m. Cost savings of US$40-50m are expected via the company's cost-out plan.

Morgans lowers its target to $29.78 from $30.97. Add.

Sector: Software & Services.

Target price is $29.78.Current Price is $23.60. Difference: $6.18 - (brackets indicate current price is over target). If CPU meets the Morgans target it will return approximately 21% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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