ASX's (ASX:ASX) 9% share price increase on Thursday following its fiscal 2026 earnings release likely reflected investor relief that the company's reaffirmed fiscal 2027 expense guidance did not show further deterioration, Jefferies said in a Friday note.

The company's fiscal 2026 operating revenue improved over 13% to AU$1.25 billion, buoyed by its markets business where revenue grew nearly 19% due to a surge in interest rate futures and options volumes, the investment firm said.

It added that ASX achieved a key operational benchmark with the successful launch of Chess Release 1 on April 20, delivering the core technology modernization milestone on schedule and within financial guidance. Management is targeting the primary build completion for Release 2 by the end of 2027.

Jefferies maintained a hold rating on ASX, saying it prefers to wait until the company's incoming management outlines a new strategy, while raising the price target to AU$58 from AU$50.