Citi suspects Macquarie Group will have little choice but to guide to an earnings decline in FY22.
While there was a large upgrade to FY21 earnings guidance in February, this only begs the question regarding the cycling of comparables.
Given abnormal events in the FY21 base, Citi believes management will need to be conservative. Sell rating reiterated. Target is $125.
Sector: Diversified Financials.
Target price is $125.00.Current Price is $154.80. Difference: ($29.80) – (brackets indicate current price is over target). If MQG meets the Citi target it will return approximately -24% (excluding dividends, fees and charges – negative figures indicate an expected loss).