Higher asset prices and rising sharemarket turnover support an upbeat view on ASX Limited, according to Morgan Stanley.
Analysts led by Daniel Toohey have an "overweight" recommendation on ASX, preferring the stock to Computershare.
They note a "growing disconnect" between the Computershare's valuation and fundamentals, while saying the ASX is set to benefit from resilient cash equities turnover.
"While near-term catalysts are lacking, delays in finalising bank capital rules reduce upside risk to our 2017 capital raising forecasts," Toohey said in a note to clients.
"Nonetheless, in a market trading on elevated multiples, we believe ASX's defensive beta and growth levers provide relative attractions, with blockchain optionality providing opportunities to expand along the value chain and reduce costs and capital."
Morgan Stanley estimates ASX will report a first-half profit of $215 million.
Conversely, the Morgan Stanley analysts have an "underweight" rating on Computershare.
They say Computershare's earnings trajectory will continue to face challenges from a slower rate of global mergers and acquisitions in listed markets.
"Our analysis shows a lack of large and/or complex transactions involving listed targets in 1H17(estimate), particularly in the US which contributes greater than 50 per cent of corporate actions revenues."
