Morningstar flags uncertainty for Australia's PEXA after regulator proposes reforms

PEXA

06/04/2026 20:22

** Morningstar cuts fair value estimate for shares of property exchange PEXA GroupPXA.AX by 8% to A$18.50 per share

** Shares of co fell after the Independent Pricing and Regulatory Tribunal of New South Wales (Ipart), proposed reforms to regulate pricing for co based on a building block model

** Morningstar explains that a building-block model requires assessing an initial asset base on which the property exchange may earn a return

** Notes that a low initial asset base would lower deemed appropriate return and introduce possibility that prices could be lowered

** Morningstar assumes a 25% probability  that prices will be reduced nationally for a 6% return for a capital base of A$750 million($518.78 million), which is the midpoint of the examples provided by Ipart

** PXA shares fell 21.8% last week, down 10% YTD

($1 = 1.4457 Australian dollars)

 (Reporting by Nichiket Sunil in Bengaluru)

 ((Nichiket.Sunil@thomsonreuters.com))