Morgan Stanley feels the ASX's abandonment of the blockchain CHESS replacement project creates strategic uncertainty and could also lead to more competition in the Australian market.

The company will write-off the entire capitalised software balance for the project of between -$245-255m pre-tax (-$172-179m post tax) in the 1H of FY23.

Management left FY23 opex growth guidance unchanged at 10-12%, while FY23 capex guidance was reduced by -$15m to $100-110m as the CHESS replacement team is reduced.

The Equal-weight rating and target price of $80.20 are retained. Industry view: In-Line.

Sector: Diversified Financials.

Target price is $80.20.Current Price is $71.13. Difference: $9.07 - (brackets indicate current price is over target). If ASX meets the Morgan Stanley target it will return approximately 11% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena