Goldman Sachs just put a buy rating on this ASX 50 share

This blue chip could be a top option according to one broker.

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The Computershare Ltd (ASX: CPU) share price is pushing higher on Monday despite the market weakness.

In afternoon trade, the ASX 50 administration services company's shares are up 0.5% to $23.64.

This compares favourably to a 0.6% decline by the ASX 200 index.

Why is this ASX 50 share rising?

Today's gain appears to have been driven by a broker note out of Goldman Sachs this morning.

According to the note, the broker has initiated coverage on Computershare's shares with a buy rating and a $27 price target.

This implies a potential upside of 14% for investors over the next 12 months.

Goldman is also forecasting a 5.2% dividend yield in FY 2024, increasing the total potential return to over 19%.

What did the broker say?

Goldman named five reasons why it has just put a buy rating on this ASX 50 share.

This includes its potential to outperform guidance, strong balance sheet, and undemanding valuation compared to long-term multiples. It explains:

1) We see upside to FY24 management EPS guidance of 116cps. 2) CPU's Balance sheet is strong and expected to improve further with margin income and FCF despite below the line costs. 3) FY24/FY25 margin income to remain strong from cash rates, however, CPU is hedging a large share of its exposure to reduce earnings sensitivity to yields. 4) Core business: CPU's core business ex MI should benefit from a recovery in corporate actions through improved transaction / event based revenues as well as lower cost inflation pressures being flagged by management and cost out. 5) Overall, we think valuation is not demanding at close to 13x FY24E vs longer term average of around 17x.

The Computershare share price is down almost 15% over the last 12 months.

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