FY18 profit is expected to be broadly in line with FY17. Deutsche Bank notes the annuity business is performing in line with expectations and there are some positive aspects to activity levels in the market-facing businesses.
FX trends are the potential headwind if the Australian dollar remains a current levels. Target is raised to $90.70 from $90.30. Hold.
Sector: Diversified Financials.
Target price is $90.70.Current Price is $85.05. Difference: $5.65 – (brackets indicate current price is over target). If MQG meets the Deutsche Bank target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).