Morningstar cuts ASX fair value after $99.6 million regulator fine

ASX

16/12/2025 19:23

** Analysts at Morningstar lower fair value estimate for Australia's bourse operator ASX ASX.AX by 4% to A$70; reiterates "undervalued" rating

** Australian regulator on Monday imposed additional A$150 million ($99.56 million) charge on ASX

** Exchange operator to cut its dividend payout ratio to 75%-85% of underlying NPAT, with payout ratio expected to be at the bottom end of the range for at least the next three allocations

** Investment research firm says ASX's near-term spending will remain high as it is under stiff media and regulatory scrutiny

** Expects ASX's operating margins to start expanding again in FY29 and return to high-50s at the end of FY35 — Morningstar

** ASX down 20% YTD, as of last close

($1 = 1.5067 Australian dollars)

(Reporting by Keshav Singh Chundawat in Bengaluru)

((Keshav.singhchundawat@thomsonreuters.com))