Computershare Earnings: Pleasing Recovery in Most Core Businesses

Computershare’s fiscal 2024 underlying results were largely as expected, with core businesses performing a little better than expected. Underlying EBIT of USD 1.15 billion met our forecasts, with stronger operating income (excluding margin income) offset by slightly lower margin income than anticipated. Core segments such as issuer services, employee share plans, and communication services delivered better-than-expected volumes, leading us to marginally increase our fair value estimate to AUD 26.50 from AUD 26.00 per share. This adjustment reflects stronger revenue growth in Computershare’s core businesses, which we expect can be maintained. We make minimal changes to our medium-term margin income projections.