BUZZ - Citi: Computershare added to the Positive Catalyst Watchlist ahead of the Annual General Meeting

October 26 - ** Citi has added Computershare Ltd (CPU.AX) to its "Positive Catalyst Watch", anticipating the company will release positive news at its annual shareholders meeting on November 12

** The brokerage expects that Computershare will at least reiterate its target of 6% earnings growth for fiscal 2027, with a possibility of a slight upward revision

** Citi believes that, benefitting from the earlier-than-expected US interest rate hike in September and increased balances from corporate actions and debt issuance, Computershare's projected net interest income for fiscal 2027 will be slightly better than expected

** However, Citi notes that the near-term boost to earnings may be limited, as approximately 60% of the asset portfolio has already been hedged and the yield on new funds may be relatively low

** The brokerage expects the company to achieve net cash status in the first half of 2027, or have about USD 3.3 billion in debt financing capacity for acquisitions

** Citi maintains a "Neutral" rating and keeps the target price unchanged at AUD 43.20

** As of the previous trading day's close, the stock had risen 26.2% year to date

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