Nucor earnings beat by $0.08, revenue fell short of estimates
JPMorgan downgraded ASX Limited (ASX:ASX) stock rating from Overweight to Neutral on Monday, while lowering its price target to AUD68.50 from AUD71.50.
The downgrade follows an announcement that the Australian Securities and Investments Commission (ASIC) will conduct a new inquiry into ASX’s governance capabilities, increasing regulatory scrutiny on the exchange operator.
JPMorgan identified the FY26 earnings outlook as an immediate risk for investors, noting that ASX’s expense guidance was established before ASIC’s announcement of the inquiry.
The research firm made modest adjustments to its earnings projections for FY26 and beyond, while highlighting that governance risks have increased for the company.
JPMorgan also pointed out that fee increases to offset capital expenditures and expenses are likely to be implemented only from FY28, contributing to its decision to downgrade the stock following its recent price appreciation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.