In Paul Rickard’s article above he takes a serious look at Macquarie Bank, its recent performance and its future. Raymond Chan is also a fan of Macquarie for the following reasons.
“Macquarie Bank’s (MQG) financial year 2023 net profit after tax (NPAT) of $5.18 billion was +10% on the participating convertible preferred share (pcp) and 2% above company compiled consensus ($5.08 billion),” Raymond said.
The second half of 2023 dividend (A$4.50 per share, 40% franked) was 18% above consensus ($3.82 per share).
“In our view, it could be argued this was a lower quality beat by MQG, but there is no doubt the diversity of its franchise seems to help Macquarie generally find a way to outperform.
“We lower our MQG financial year 2024/financial year 2025 earnings per share (EPS) by -9%-10% based on more conservative assumptions in Commodities and Global Markets (CGM) and Macquarie Asset Management (MAM).
“Our price target (PT) falls to $202 (previously $215).
“We maintain our ADD recommendation, with more than 10% upside to our price target,” Raymond said.
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