Australia's ASX down as Jefferies, Morningstar cut PTs on higher 2027 spending

ASX

27/05/2026 01:26

Updates
** Shares of Australia's ASX ASX.AX fall as much as 4.9% to A$48.510, hitting their lowest level since March 23
** Jefferies cuts price target to A$50 from A$54 after bourse operator warned of sharp rise in 2027 spending for technology upgrades and new product developments
** Morningstar lowers fair value estimate by 5% to A$67
** Investment research firm notes ASX's attribution of higher costs to technology cost inflation and new product development
** "We struggle to reconcile this with artificial intelligence driving down cost of technology development," Morningstar says
** Expects ASX's incoming CEO to provide opportunity for a reset of relations with market participants and, crucially, regulators
** ASX stock down nearly 6% this year, including day's move

 (Reporting by Rajasik Mukherjee in Bengaluru)
 ((Rajasik.Mukherjee@thomsonreuters.com))