Morningstar analysts have reduced the fair value estimate by 3% to A$72.5 for ASX, Australia’s multiple-asset exchange.

The move comes after the exchange reported underlying earnings of 254 Australian cents per share on Thursday, a 3% decline from the previous year and 6% below Morningstar’s estimate.

This was attributed to higher-than-expected costs.

The market is focused on the near-term growth prospects of the bourse operator, particularly surrounding expenses and capital expenditure.

Furthermore, new chief Helen Lofthouse has triggered a leadership overhaul that may prove advantageous to ASX and its shareholders.

According to Jefferies analysts, ASX maintains a robust pipeline of corporates looking to list.

They also predict slight negative adjustments to consensus estimates for ASX to account for lower activity-related revenues.

Morningstar anticipates improvements in the broader Australian financial sector through innovative perspectives under ASX’s new leadership.

As of the most recent close, the stock is down 11.1% this year.

ASX (ASX:ASX) is a multi-asset exchange serving Australia’s financial market.