Macquarie surprised, once again, with a market beating result but Citi analysts are not to be deterred and stick with their Sell rating. The upside surprise can be explained through one-off factors, explain the analysts.
Underlying, the analysts maintain, core operations already showed signs of peaking one year ago. It is Citi’s view Macquarie needs a transformational acquisition to keep the good growth story going.
In the absence of such an acquisition, the analysts see negative growth ahead, and a weaker share price. Sell. Target price rises to $72 from $67.75.
Sector: Diversified Financials.
Target price is $72.00.Current Price is $94.89. Difference: ($22.89) – (brackets indicate current price is over target). If MQG meets the Citi target it will return approximately -32% (excluding dividends, fees and charges – negative figures indicate an expected loss).