Citi’s analysts have resumed their coverage on stock transfer firm Computershare (ASX:CPU), issuing a ‘buy’ rating with a target price of A$29 per share.

Citi sees the firm’s recent divestment of its U.S.

mortgage arm as strategically sound, and forecasts improved earnings quality as a result.

Computershare (ASX:CPU) continues to scout for acquisitions, Citi notes.

However, the brokerage has expressed that Computershare’s (ASX:CPU) communications services sector seems likelier to face an internal restructuring rather than a potential divestment.

Seven out of nine analysts rated the stock ‘buy’ or higher, and two have held; the median target price is at A$28.45 per the LSEG data.

The stock has fallen 2.4% this year, as of the last close.

Computershare (ASX:CPU) is a stock transfer company that manages and administers securities, and plans investor events for companies.