Why the Macquarie (ASX:MQG) share price hit its all-time high on Friday

Another strong finish to the week for the Australian banking giant.
The post Why the Macquarie (ASX:MQG) share price hit its all-time high on Friday appeared first on The Motley Fool Australia. –

Shares in investment banking giant Macquarie Group Ltd (ASX: MGQ) edged higher in the afternoon today and finished trading at $182 apiece.

That’s a shade off its all-time high of $183.71 which it hit in early trade this morning.

These are impressive results for the bank, which has rallied 6.5% in the last month and recovered from a previous low of $171.93 on 21 September.

Why don’t we dive in and see what’s been fuelling this growth in the Australian banking group’s share price lately.

What tailwinds are behind the Macquarie share price?

Taking a step back and looking at a wider time frame, it was a good month in September for Macquarie’s share price.

Early last month the bank gave an investor presentation detailing its outlook for the coming periods.

From its presentation, the company expects a significant increase in operating profit for the first quarter of FY22, due to the sale of some of its business segments, and strengths in others.

It did, however, say it expects a slight down-step in earnings from the second half of FY21, but that it still expects significant year on year growth in its FY22 first half results.

Aside from this, Macquarie believes it is well positioned to capitalise on tailwinds that have emerged from its investments into renewable energy.

Macquarie is a large green and renewables investor, with over $2 billion in current funding commitments on its books, and another $45 million ready to support green energy.

With this, it believes it will continue to deliver outsized returns over the coming years, as energy production and consumption trends begin to shift away from fossil fuels.

Investors have been buying the company’s growth narrative this past month, and appear to be pricing in the company’s future growth potential with this flurry of buying activity.

Can Macquarie keep it up to justify its all-time high share price?

One leading broker seems to think so. Analysts at investment firm Jeffries believe the company has the legs to outperform the consensus view at its upcoming half-year results.

Jeffries forms its view partly due to the recent turbulence in global gas markets, but also see’s strengths from Macquarie recently gaining market share in the home and business loans markets.

It also believes that with the upcoming 2021 COP26 UN Climate Change Conference just around the corner, Macquarie could be on the receiving end of favourable government initiatives that may follow the conference.

Not only that, in terms of market size, Macquarie’s total addressable market in this segment is “far bigger than (its) present $66 billion market capitalisation”, which is a bullish signal, according to Jeffries.

As such, it has a $211 price target on the Macquarie share price, implying a 16% upside potential from the last market price.

Macquarie shares are also up 41% in the last year, ahead of the S&P/ASX 200 index (ASX: XJO)’s return of around 25% in this time.

The post Why the Macquarie (ASX:MQG) share price hit its all-time high on Friday appeared first on The Motley Fool Australia.

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

Before you consider Macquarie Group, 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 Group 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

How did the Macquarie (ASX:MQG) share price perform in September?
The most important catalyst for outperforming ASX shares: fund manager

2 compelling ASX shares that could be buys in October 2021

How does the Westpac (ASX:WBC) dividend compare to the banking sector?
These were the best performing ASX bank shares in September

The author Zach Bristow has no positions 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!