Patience Still Required From Macquarie Bank Shareholders, Says Intersuisse

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By Rudi Filapek-Vandyck

Shareholders in Macquarie Bank (MBL) may have to wait just a little longer before the blue sky promises translate into an actual financial benefit – the shares haven’t moved much on a twelve month time frame.

The bank posted a 13% rise in net profit to a record $916m in the year to 31 March 2006. Today’s admission that net profits this year will be higher than last year’s is unlikely to provide a catalyst.

Analysts at Intersuisse agree. They reiterate a view that has passed the FN Arena news desk repeatedly over the past few months: first further asset sales, then a higher share price.

In Intersuisse’s language this becomes: "We do not expect a return to earlier highs until further asset disposals are successfully achieved with confirmation of continuing sound performance".

Regardless, today’s earnings guidance, no matter how cautious, has encouraged the broker in its earlier positive view. Long Term Buy recommendation has been left untouched. MBL is included in Intersuisse’s Preferred Portfolio Stock list as well.

The broker is far from the only one with a positive bias towards the stock. The FN Arena database of ten leading local equity experts (of which Macquarie obviously refrains from giving a recommendation itself) shows seven positive ratings and two Neutral.

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