Analysts at Morningstar have resumed coverage on Link Administration Holdings (ASX:LNK) as the company focuses on expanding its fundamental retirement and superannuation solutions, as well as its corporate markets businesses.

The brokerage firm has offered a fair value estimate of A$1.50 and a ‘high’ uncertainty rating.

They believe Link’s earnings will be boosted by an increase in retirement accounts, cost cutting, and higher interest rates after an extended era of historic lows.

‘Link’s capital-efficient business model and high recurring fee revenue should enable a reliable balance sheet and regular dividend payouts,’ said Morningstar.

They predict that the company’s underlying earnings per share will remain relatively stagnant over the next five years until fiscal 2028.

Two out of six analysts rate the stock as ‘buy’ or higher, with one recommending a ‘hold’, and three offering a ‘sell’ or lower recommendation.

Their median price target is A$1.68, according to information from LSEG.

Link Administration’s stock has seen a 29.4% decline year-to-date, as of its most recent closing.

Link Administration (ASX:LNK), based in Australia, is engaged in the provision of retirement, superannuation solutions, and corporate markets services.