** Shares in Australian bourse operator ASX Ltd ASX.AX rise as much as 5.5% to A$56.4, their highest level since December 15, as upbeat broker views outweigh cost concerns

** ASX lifts its FY26 expense growth outlook on Wednesday to 22% from 17%, flagging heavier spending on risk‑management and technology upgrades to meet heightened regulatory scrutiny

** Citi analysts say ASX’s elevated expense outlook underscores persistent challenges amid “uncertain regulatory goalposts”

** Brokerage, however, says stronger‑than‑expected revenue cushions some of the earnings impact

** Despite cost headwinds, Citi raises its price target to A$54.50 from A$52.20, citing adjustments made for higher base expenses

** Morningstar maintains its A$70 fair value estimate for ASX, indicating shares remain undervalued

** Morningstar notes fiscal 2026 operating margins are likely to dip to the low-50s due to regulatory-driven cost pressures

** Stock up 8.8% this year, including the day's move

(Reporting by Roushni Nair in Bengaluru)

((Roushni.nair@thomsonreuters.com))