And yet again the ASX delivered a better-than-expected interim performance, but Citi analysts still cannot get past its valuation. Estimates have been lifted by 2%-3% and take some comfort from guidance towards further lower costs.
Citi analysts fully acknowledge the ASX’s defensive qualities on top of its positive leverage to higher market volatility, but they cannot get past the valuation. Sell. Price target lifts to $61.40 from $59.80.
Sector: Diversified Financials.
Target price is $61.40.Current Price is $68.19. Difference: ($6.79) – (brackets indicate current price is over target). If ASX meets the Citi target it will return approximately -11% (excluding dividends, fees and charges – negative figures indicate an expected loss).