ASX LTD's stock fell sharply by 5.13% during intraday trading on Wednesday, following warnings from the Australian bourse operator about significantly increased spending plans for 2027.

The decline came after ASX alerted investors to a sharp rise in 2027 expenditures for technology upgrades and new product developments. In response, Jefferies cut its price target for ASX to A$50 per share from A$54, while Morningstar lowered its fair value estimate by 5% to A$67 per share.

Morningstar analysts expressed skepticism about the cost increases, noting that "we struggle to reconcile this with artificial intelligence driving down the cost of technology development." The investment research firm expects ASX's incoming CEO to provide an opportunity for resetting relations with market participants and regulators.