Morgans upgrades FY22 and FY23 estimates for earnings per share by 8% and 3%, respectively, to reflect Macquarie Group’s more positive outlook. Macquarie Group expects first half net profit to be only slightly lower compared with the prior half’s strong performance.
Exposed The business is of disposed to structural growth areas and capitalising well on the current environment, with the broker noting some value accretive acquisitions.
Yet, with the stock running hard and now trading on 20x FY22 PE it is close to fair value and the broker downgrades to Hold from Add. Target is raised to $181.10 from $172.30.
Sector: Diversified Financials.
Target price is $181.10.Current Price is $179.13. Difference: $1.97 – (brackets indicate current price is over target). If MQG meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
