Following Macquarie Group’s 1H results, Morgans raises its target price to $200 from $181.1 due to a lift in long-term growth assumptions and a valuation adjustment. The Hold rating is unchanged after a strong recent share price rally.
The analyst attributes the capital raise to the strong share price, as opposed to the investment opportunities cited by management.
While the profit and dividend were slightly below consensus forecasts, the broker focused on a rise in return on equity (ROE) to 17.8% from 14.3% in FY21.
Sector: Diversified Financials.
Target price is $181.10.Current Price is $197.83. Difference: ($16.73) – (brackets indicate current price is over target). If MQG meets the Morgans target it will return approximately -9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
