Insights

Top broker gives its verdict on the Macquarie (ASX:MQG) share price

Here’s what this broker thinks of Macquarie…
The post Top broker gives its verdict on the Macquarie (ASX:MQG) share price appeared first on The Motley Fool Australia. –

The Macquarie Group Ltd (ASX: MQG) share price was a strong performer on Thursday following the release of a trading update.

The investment bank’s shares rose as much as 7% at one stage to a record high of $182.66.

The Macquarie share price ultimately ended the day 4.5% higher at $179.13.

Can the Macquarie share price keep rising?

One leading broker has given its verdict on the Macquarie share price. And while it is a fan of the company, it unfortunately isn’t a fan of its valuation.

According to a note out of Goldman Sachs, its analysts have retained their neutral rating and lifted their price target by 9% to $170.62.

Based on the current Macquarie share price, this implies potential downside of almost 5% over the next 12 months.

What did the broker say?

Goldman was pleased with Macquarie’s trading update and has upgraded its earnings estimates to reflect a significantly better than expected start to FY 2022.

It commented: “MQG has provided updated guidance in which it now expects 1H22 NPAT to be slightly down on 2H21. We take this to mean down c.5% and note this compared to previous GSe of 1H22 NPAT down 17%.”

However, this isn’t enough for a more bullish rating due to valuation reasons.

Goldman explained: “The earnings upgrade cycle continues for MQG and since troughing in May-20, its 12-mo forward EPS has risen 52%, and sits within 2% of its Apr-19 peak. However, since Apr-19, its share price is nearly one-third higher. Therefore, with MQG currently trading on a 12-mo forward P/E of 20.5x, with incremental earnings upgrades still coming largely from investment income and trading, we stay Neutral. We also highlight that our revised TP offers -2% 12-mo TSR.”

All in all, the broker appears to believe the Macquarie share price may have peaked for the time being. This could make it worth looking elsewhere in the sector.

The post Top broker gives its verdict on the Macquarie (ASX:MQG) share price appeared first on The Motley Fool Australia.

Should you invest $1,000 in Macquarie right now?

Before you consider Macquarie, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Macquarie wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

5 things to watch on the ASX 200 on Thursday

ASX 200 falls, Macquarie jumps, Aussie Broadband climbs

Which ASX shares are making a move on the ASX 300?

Why Aeris Resources, Macquarie, Novonix, & Qube shares are pushing higher

ASX 200 midday update: Macquarie jumps, gold miners sink

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!