Citi raises ASX target price, EPS outlook on strong volumes and futures pricing

ASX

13/08/2026 21:35

** Citi hikes target price for Australia's ASX ASX.AX to A$60.10; maintains "neutral" rating
** Lifts ASX's FY27/FY28 EPS forecasts by about 3%, citing higher futures pricing and stronger trading volumes
** Says "ASX's revenue remains strong and, for now, this looks set to continue"
** Expects derivatives and cash equities trading volumes to remain supported in the near term by elevated market volatility after reaching record highs in second half of FY26
** Notes ASX has reaffirmed its FY27 cost growth guidance of 18%-21% year-on-year; Citi forecasts growth of about 20%
** Says outlook for FY28 costs remains uncertain as new CEO David Clarke, who starts on September 1, may pursue initiatives such as tokenisation, T+1 settlement changes or potentially 24/7 trading
** Adds valuation discount to global exchange peers has largely narrowed, leaving the stock appearing fairly valued despite improving earnings outlook
** YTD, ASX up 17.6%


($1 = 1.4168 Australian dollars)

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