Following an operational briefing and business update, Credit Suisse upgrades Macquarie Group’s earnings estimates by 14-16%, driven by an improved earnings outlook for Macquarie Capital and Commodities and Global Markets.
The December quarter performance of the Macquarie Asset Management division also boosted the analyst’s outer years earnings forecasts. The division is considered to have strong deal flow in digital infrastructure, transport and decarbonisation.
The Neutral rating is retained as earnings may be approaching peak levels, estimates the broker. The target price rises to $210 from $195.
Sector: Diversified Financials.
Target price is $210.00.Current Price is $197.01. Difference: $12.99 – (brackets indicate current price is over target). If MQG meets the Credit Suisse target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
