Credit Suisse continues to believe Macquarie Group is a quality business but there are multiple headwinds over the short-term around transaction volumes, asset realisations and the potential for further impairments.
Earnings estimates are modestly downgraded by -6%, attributed to lower activity following the impact of the pandemic.
Rating is downgraded to Neutral from Outperform as the share price is up in excess of 40% since mid March. Target is reduced to $107.50 from $110.00.
Sector: Diversified Financials.
Target price is $107.50.Current Price is $105.19. Difference: $2.31 – (brackets indicate current price is over target). If MQG meets the Credit Suisse target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
