ASX Ltd

ASX: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$35.00	Btrr	Rgvd

ASX: Margins Will Take Longer to Recover

Roy Van Keulen

Jun 13, 2024

We maintain our AUD 75 per share fair value estimate for wide-moat ASX following its investor forum. Management provided guidance for medium-term expenditure growth, which disappointed markets. Shares traded down about 8% through the day. We remain confident that ASX will be able to return to historical operating margins over time but have pushed out the timeline for the start of margin recovery to fiscal 2027 from fiscal 2026 previously. At current prices, ASX shares screen as materially undervalued.

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