Computershare’s Weak First-Half Result Not Reflective of Brighter Long-Term Outlook

We have maintained our earnings forecasts and AUD 19.40 fair value estimate for narrow-moat-rated Computershare despite its weak first-half result. Importantly, management maintained fiscal 2020 earnings guidance, implying a 5% fall in management EPS, which is broadly in line with our forecasts. The share price has performed well recently, rising 17% over the past six months to AUD 17.63, but we still believe the stock is undervalued.