JPM, Macquarie "neutral" on ASX, flag risks from ASIC proceedings and expenses
Updates with Macquarie comments
** Shares of bourse operator ASX ASX.AX down 0.5% to A$65.7 at 0406 GMT
** Analysts at J.P. Morgan keep "neutral" rating on stock, believing earnings upside is short-term and could be hurt by potential penalty from Australian Securities & Investments Commission (ASIC) proceedings
** Macquarie also maintains "neutral" reflecting medium-term opex and capex concerns
** JPM upgrades FY25 NPAT forecast by 4.2%, reflecting strong trends in derivatives volumes and slightly better than expected recovery in cash markets
** Macquarie cuts FY25 earnings estimate by 4.0%, pushing opex growth to top end of guidance range
** JPM says there will be heightened regulatory scrutiny in the medium term, given recent timeline of events
** Whilst ASX's new expense and capex guidance covers base case scenarios for current regulatory scrutiny, we think there can be a possibility of a material penalty — JPM
** Stock has risen 4.2% YTD, underperforming 7.7% gains in the ASX 200 benchmark .AXJO
Reporting by Himanshi Akhand and Sneha Kumar in Bengaluru
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