UBS’s price target implies a potential upside of 37% for the stock from Thursday’s closing levels. The price target is still well below the stock’s recent peak of ₹6,133.40.
The foreign brokerage mentioned that scaling up of options turnover is acting as a ‘key driver’ for BSE.
It also said that BSE benefits from diverse revenue streams, with operating margins expected to improve.
Additionally, there is potential value if a common contract note gets approved.
BSE’s valuation currently stands at 33 times its one-year forward price-to-earnings ratio, an 11% premium to its average.
However, the brokerage believes that historical valuation multiples are less relevant given BSE’s revamped business model.
Recently, another brokerage house Nuvama Institutional Equities slashed its price target on BSE Ltd., while maintaining its ‘Buy’ recommendation on the stock.
The price target on BSE was reduced to ₹5,160 from ₹7,250 earlier by Nuvama.
NSE has changed expiry day for its derivative contracts to Monday, which is one day prior to that of BSE.
Nuvama, in its research note, argued that this would lower volumes for industry as trading avenues for retail traders, who are typically more active closer to expiry, will reduce.
Goldman Sachs has also cut its price target on BSE for the second time in a week. The brokerage has a target of ₹4,230 on the stock.
The brokerage said that the NSE expiry day change to Monday from Thursday, with effect from April 4, is negative for the BSE options market share.
It said the change in expiry day would matter the most for weekly option contract expiries.
Out of the 12 analysts that have coverage on BSE, one of them have a ‘Sell’ rating on the stock, nine of them say ‘Buy’, while the other two have a ‘Hold’ rating.
Shares of BSE ended 2.68% lower on Thursday at ₹3,907. The stock has declined nearly 30% so far in 2025. BSE shares have also corrected 36% from their record high level of ₹6,133.40.
