PEXA shares continue sliding despite regulator’s response to queries
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The news: The share price of dominant electronic conveyancing business PEXA has entered its second day of decline after NSW pricing regulator IPART issued a proposal for a new calculation methodology, despite issuing a response to queries overnight.
The numbers: At 10:45am AEDT, shares in PEXA had fallen 1% to $12.84. Shares suffered a near 15% hit on Wednesday after UBS cut its target price and downgraded its rating from ‘buy’ to ‘neutral’.
The context: On Tuesday, IPART proposed a new methodology for calculating the efficient regulated price for electronic conveyancing providers in the absence of competition.
After receiving multiple queries about an “example showing how a building block model operates under different hypothetical asset bases” detailed in the consultation paper, IPART sought overnight to draw attention to the disclaimer that “this example is illustrative only”.
The disclaimer also flagged that “it does not reflect IPART’s assessment of the appropriate level of the initial [cost] base or PEXA’s proposal”.
IPART also reiterated that it “will consider all feedback received through submissions before developing draft recommendations for the draft report, which we expect to publish in June 2026”.
The source: ASX
