Computershare (ASX:CPU) Valuation Check As New Blockchain Share Issuance Deal With Securitize Emerges

Securitize’s new agreement with Computershare (ASX:CPU) puts blockchain directly into the equity issuance process, allowing U.S. listed companies to create issuer sponsored tokenized shares that keep existing shareholder rights and regulatory frameworks intact.

See our latest analysis for Computershare.

The Securitize agreement lands as Computershare’s 1 month share price return of 6.7% and 7 day share price return of 2.3% contrast with a 10.0% year to date share price decline. At the same time, the 5 year total shareholder return of 150.5% highlights how sentiment has shifted over different holding periods.

If this move into on chain equity has you thinking about where else new themes are emerging, it could be worth scanning 26 cryptocurrency and blockchain stocks

With Computershare trading at A$30.73 alongside an analyst price target of A$34.47 and an estimated intrinsic value gap of around 36%, is the recent weakness a chance to buy, or is the market already pricing in future growth?

Most Popular Narrative: 11.3% Undervalued

Analysts see Computershare’s fair value around A$34.63 versus the last close at A$30.73, which helps frame the recent share price weakness in a different light.

The company’s divestment from U.S. Mortgage Services and focus on its core businesses is expected to drive strong performance, as evidenced by the first full set of results featuring a 6.4% increase in management revenue and more than a 20% increase in management EPS, potentially impacting overall earnings positively.

Read the complete narrative. Read the complete narrative.

See how modest revenue assumptions, fatter margins and a higher future earnings multiple combine to support that A$34 plus fair value line in the sand.

Result: Fair Value of A$34.63 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, this depends on interest rate sensitive margin income and successful execution of digitisation and AI plans, and any setbacks could quickly challenge that A$34 plus narrative.

Find out about the key risks to this Computershare narrative.

Next Steps

With both risks and rewards on the table, does the balance match your own expectations for Computershare, or feel off? To stress test the story from both sides, check the 3 key rewards and 1 important warning sign

Looking for more investment ideas?

If Computershare has sharpened your thinking, do not stop here. Widen your search with focused stock ideas that line up with your goals and risk comfort.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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