Macquarie Group’s potential bid for the Green Investment Bank in the UK could man a capital raising of up to $500m, Morgan Stanley contends. The broker believes it could be a neat strategic fit which enhances medium term growth prospects for equity under management.
The company has not acknowledged publicly it is involved in the process but, should Macquarie emerge as preferred bidder, Morgan Stanley believes any transaction would involve its specialist infrastructure business, MIRA, as a co-investor.
Equal-weight rating and In-Line sector view retained. Target is $74.00.
Sector: Diversified Financials.
Target price is $74.00.Current Price is $83.93. Difference: ($9.93) – (brackets indicate current price is over target). If MQG meets the Morgan Stanley target it will return approximately -13% (excluding dividends, fees and charges – negative figures indicate an expected loss).