Analysts from UBS, Bernstein and JPMorgan hold different views on BSE shares after the company reported its September quarter results on Wednesday. While UBS and JPMorgan see potential growth for the stock, Bernstein remains bearish. Currently, 15 analysts have a buy rating, as the stock rose 37% this year.

Analysts from UBS, Bernstein and JPMorgan find themselves on the opposite side of the spectrum when it comes to analyzing future prospects for shares of the Bombay Stock Exchange (BSE) Ltd. after its September quarter results, which were reported after market hours on Wednesday.

UBS Sees 12% Upside For BSE

UBS has maintained its "outperform" recommendation on BSE with a price target of ₹4,050, which indicates an upside potential of 12% from current levels.

BSE's cash equities segment outperformed during the quarter with normal rate revenue growth accelerating, UBS wrote in its note, adding that the lower regulatory and operating expenses as a percentage of sales led to the margin beat.

JPMorgan Expects BSE To Test ₹4,000 Levels

JPMorgan has maintained its "overweight" rating on BSE with a price target of ₹3,960.

Revenue growth during the quarter was led by a step-up in equity derivatives but impacted by multiple headwinds on a sequential basis.

The profit beat was also aided by higher other income for BSE, JPMorgan observed

Bernstein Is Bearish On BSE

The global investment banking firm has an "underperform" rating on BSE with a price target of ₹3,180, which indicates a 12% downside for the stock from current levels.

Bernstein noted that the impact from the Closing Auction Session (CAS) reflected in softer volume growth and market share trends during the second quarter, both of which were known.

However, lower SGF contributions led to earnings beating expectations.

Third quarter trends on market volumes and BSE's market share gains remain strong, although the firm remains concerned about longevity of BSE's high-growth and consequential normalization of valuations.

21 analysts have coverage on BSE, of which 15 have a "buy" rating on the stock, four have a "hold" rating, and two others have a "sell" recommendation on the exchange. The consensus estimate of price target implies an upside potential of only 8% from current levels.

Shares of BSE ended 1.7% lower on Wednesday ahead of the results announcement at ₹3,601.5. The stock is up 37% so far this year.