STTCOMP LNK FA LONGPrice $7.04  Target $8.90 (26%)!Link Group is...

STTCOMP LNK FA LONG
Price $7.04  Target $8.90 (26%)!

Link Group is Australia's largest Superannuation Administrator. (80% of outsourced market share).

The budget reforms to superannuation that are stalled in the senate include scrapping exit fees, and moving low balance members to the ATO.
LNK have estimated approximately 50m hit to their revenue (hence stock under pressure).

IT is highly unlikley any of these changes becomes an issue until June 2020 as there are only 2 weeks of sitting left before the May election, and the industry needs time to issue PDS's etc

Australian Super also announced increased admin fee by 50% and scrapping of exit fees (https://www.financialstandard.com.au/news/australiansuper-hikes-admin-fees-132111852).
For Australian Super this would net increase their revenue by approximately $72m a year. I expect a large chunk of this will flow to LNK. (at least half)

I expect other large funds to follow suit (which will also largely flow to LNK). So I expect that they will recoup all of this 50m hit.

The question is will the analysts and the media pick up on it. If they do I think it rallies Short Term.