Ord Minnett rates LNK as Accumulate (2) - Link Administration...

Ord Minnett rates LNK as Accumulate (2) -

Link Administration has made a minority investment in Smart Pension, a financial technology start-up operating in the UK. It will join with current investors Legal & General and JPMorgan. Link will take on administration of Smart UK's workplace pension operation.

The broker assesses the announcement is immaterial from a capital perspective and contribution to FY20 earnings, and is unlikely to bridge the earnings gap envisaged in the company stated guidance for FY20.

The investment does appear to remove the risk of a big overseas acquisition and the capital raising that may have eventuated. Accumulate rating and $7 target.