BUZZ-JPM sees boost to ASX's near-term earnings, says ASIC proceedings remain key risk

Reuters10-08

** Analysts at J.P. Morgan upgraded FY25 NPAT forecast for bourse operator ASX by 4.2%, reflecting strong trends in derivatives volumes and slightly better than expected recovery in cash markets

** Brokerage keeps "neutral" rating as it believes earnings upside is more short-term and can be taken off by potential penalty from Australian Securities & Investments Commission (ASIC) proceedings

** JPM says there will be heightened regulatory scrutiny for 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

** ASX stock last down 0.6% at A$65

** As of last close, stock down 3.7% YTD

(Reporting by Himanshi Akhand in Bengaluru)

((Himanshi.Akhand@thomsonreuters.com))

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