Asia
Computershare's Fiscal H2 Trading Update 'Modestly Disappointing,' Jarden Says
Computershare's (ASX:CPU) trading update for the second half of fiscal 2026 was "modestly disappointing" as it did not deliver on hopes for an outlook upgrade, Jarden said in a Wednesday note, but added that the company has a propensity to issue conservative guidance and later exceed it.The company maintained its fiscal 2026 management earnings per share outlook at around $1.44, which suggests limited scope for "meaningful" earnings upgrades for the fiscal year from capital markets activity, the equity research firm said.It added that the benefit of a growing pipeline is more likely to accrue in fiscal year 2027 due to the lag typically seen between transaction disclosure and closing."Overall, whilst near-term [margin income] trends are constructive and the pipeline build provides earnings upside optionality into FY27, [Computershare] offers limited valuation appeal with the tokenization structural overhang unresolved," Jarden said.Jarden maintained a neutral rating on the company and lowered its target price to AU$30.40 from AU$31, with the target price move driven entirely by Australian dollar to US dollar currency translation assumptions.
ASX:CPU