MQG – ABN Amro rates the stock as Buy

The broker sees the 1H09 result as a strong one given the circumstances and the $1.45 interim dividend sent a clear, positive signal to the market. But it’s just going to keep getting harder and maintaining this level of performance will be difficult. Write downs were lighter than expected, but going forward the broker expects that they could be slightly higher and revenue slightly weaker than management’s forecasts given the deteriorating environment.

Read More

MQG – ABN Amro rates the stock as Buy

The broker notes the sale of its Italian mortgage portfolio results in a post-tax charge of $70m from the write-off of loan acquisition costs and a loss on the sale. While the broker thinks it unlikely there will be further writedowns on infrastructure holdings, it does expect increased writedowns on real estate funds given the continuing decline in global listed real estate markets.

Read More

Is the Macquarie Model Dead?

What about the financial economy? In the U.S., Lehman Brothers (NYSE: LEH), Merrill Lynch (NYSE: MER), and Goldman Sachs (NYSE: GS) all report earnings this week. If you are a Sovereign Wealth Fund that decided to recapitalize Wall Street in the last six months, we recommend a cheap bottle of Scotch to go with your wasted capital. Wasted and wasted.

Read More

MQG – Citi rates the stock as Buy, High Risk

Citi has slashed Macquarie Group’s target price from $80.48 to $68.59 in a schizophrenic report citing bull case ($92.10) and bear case ($45.09) valuations that suggest greater upside than downside on the current share price of $57.99. This is despite earnings cuts of 4%, 11% and 10% over FY08, FY09 and FY10, based on a $300m writedown of satellite carrying values and a limited gains outlook for FY09.

Read More

Macquarie Considering Closing Fortress Investments

One of Macquarie Bank’s (ASX: MQG) enterprises, Macquarie Fortress Investments, is on the verge of winding up its investment funds according to an article in today’s Australian. “Macquarie Fortress Investments is considering admitting defeat and winding up its investment funds after yesterday revealing that the value of its listed fund had plunged another 27 per cent in just three days. The Macquarie Bank-owned entity said that closing the funds, selling the assets and returning residual cash to investors was one of the options on the table after it was hit with its first margin call.”

Read More

Macquarie Issues Cautious Guidance

hen Macquarie Bank (MBL) announced its first quarter profit back in July, the number was substantially ahead of previously issued guidance. While under normal circumstances this might evoke a big re-rating for a stock, banking analysts across town simply nodded knowingly. For Macquarie has a long history of understating guidance, and as such analysts had automatically set their earnings expectations well above, having been bitten once too often. And it worked.

Read More