Following 1H results for ASX, Macquarie lowers its EPS forecasts by an average of around -2% due to increased estimates for expense growth. FY22 expense growth guidance is now for 7-8%, up from 5-7%.
The announcement of the CEO’s retirement weighed on sentiment, though potentially creates possibilities for capital restructuring/more leverage, suggests the analyst.
The broker likes the long term growth outlook and retains its Outperform rating, while the target slips to $96.50 from $103.50.
Sector: Diversified Financials.
Target price is $96.50.Current Price is $82.47. Difference: $14.03 – (brackets indicate current price is over target). If ASX meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges – negative figures indicate an expected loss).
