Computershare Limited

CPU Details
· Solid Business services performance: Computershare Limited (ASX: CPU) stock surged over 2.83% on October 17, 2016. CPU stock has been bullish since the last three months and rallied over 18.9% (as of October 14, 2016) as the group’s Business services performed well despite the overall performance pressure for fiscal year of 2016. The business service segment growth is driven by US loan servicing, bankruptcy and class actions administration and a contribution from the UK Asset Resolution (UKAR) contract wins. CPU’s UK business was appointed by UKAR to undertake its mortgage servicing activities under a seven year outsourcing contract, which would comprise UKAR mortgages worth of GBP 30 billion. Computershare is also making efforts to service other assets worth of GBP 11 billion bought by Cerberus from UKAR. The segment is also seeing contributions from acquisitions, especially HML reporting for the entire period in FY2016 and the purchase of Gilardi. On the other hand, the UK business may be impacted by macro-economic factors (including Brexit) going forward while the voucher services and deposit protection scheme businesses’ revenue in the UK decreased during the period against FY2015. The group’s Management EBITDA and total revenue also slipped against the prior corresponding period (pcp). CPU stock is trading at slightly higher levels.

· Recommendation: Given the performance pressure, we believe that the stock is “Expensive” at the current price of $ 10.89
 

Australia and New Zealand business performance (Source: Company Reports) 

Infigen Energy Ltd

IFN Details
· Rising renewable energy demand: Infigen Energy Ltd (ASX: IFN) stock surged over 5.23% on October 17, 2016 with improving sentiments. This may be partly driven by the Australian Capital Territory (ACT) efforts of making 100% renewable energy for Australia post the Liberal Party’s failed attempts to get power. The ACT is targeting to source the equivalent of 100% of its electricity needs from renewable energy by 2020, and has already received contracts with the solar and wind farm projects which are on track. We believe IFN is well positioned to leverage the growing opportunity. Moreover, the stock is also available at subdued levels which fell over 33.5% in the last three months (as of October 14, 2016).

· Recommendation: Based on the foregoing, we give a “Speculative Buy” recommendation at the current price of $ 0.80
 

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