Australian Stock Exchange (ASX) Stock Recommendation

Stock analyst, Citigroup Investment Research (CIR) have reiterated their Buy rating for the Australian Stock Exchange (ASX) stock with a $37.32 share price target. The CEO is currently reviewing the recently revised equity pricing model and in the analysts view, the value-based model is superior to the volume-based model. According to the analyst, this is because:

1. it provides users (i.e. the brokers) a basis for direct cost comparison with the European and Asian exchanges which could improve ASX’s ability to raise prices where it lags its peers (particularly in Asia);
2. it matches the user’s costs with their revenues (i.e. in basis points);
3. it reduces the influence of retail shareholders and consequently the cyclicality of equity volumes (ironically);
4. it removes one barrier to attracting DMA volume from global funds not currently trading in Australia that has to-date been restricted by the old transaction volume-based model; and
5. historically, there has been little discernible difference between value and volume growth, although value has exceeded volume growth in the 3 instances that volumes have declined since FY92.

Australian Stock Exchange Limited is listed on the Australian Stock Exchange (ASX) under stock code ASX. You can view their investor website here. The ASX company was listed on the stock exchange on 14 October, 1998. The Australian Stock Exchnage is the economic entity provides stock exchange and ancillary services in Australia. Find out the meaning of the recommendations in this primer. Browse for other broker recommendations. Check your charts and good luck with your share trading!