Treasure Chest | 3:01 PM
FNArena's Treasure Chest reports on money making ideas from stockbrokers and other experts. Today's idea is Macquarie Group.
By Mark Woodruff
Whose Idea Is It?
RBC Capital
The subject:
Macquarie Group ((MQG)).
RBC Capital initiates coverage of asset manager and financial services provider Macquarie Group with a market-leading 12-month price target of $300, implying around 23% upside to the prevailing share price.
The financial conglomerate, commonly referred to as the Billionaires Factory or the Golden Donut, is reinventing itself by pivoting towards private markets asset management and domestic banking. It is also expanding its global energy trading and capital markets capabilities to continue supporting its decades-long growth story.
RBC Capital adds that this shift in priorities reduces Macquarie’s reliance on balance-sheet-intensive asset development in favour of capital-light private credit and funds management. The stock is seen as trading on an undemanding multiple of around 17 times forecast FY28 earnings.
RBC Capital expects the group’s 1H27 result on 6 November to provide a positive catalyst, citing upside risks to consensus forecasts and management’s FY27 guidance for Commodities and Global Markets (CGM), the group’s largest profit contributor.
Beyond the result, RBC Capital sees scope for Macquarie to lift its return on equity (ROE) above 14% by FY29, compared with more than 20% for leading global peers.
More info:
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