Macquarie shares rise on Citi ratings upgrade
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The news: Macquarie Group were higher in afternoon trade after Citi Group analysts upgraded their rating and target price on the stock due to its ability to balance conservatism and optionality in its asset portfolio in an uncertain environment.
The numbers: Macquarie Group shares were up 2.41% to $208.2 at 2:24pm AEST. Its shares have been trending upwards since 9 April and over the past 12 months have risen 9.5%.
Citi’s upgraded its rating on the stock from ‘sell’ to ‘neutral’ and increased its target price from $177 to $200.
The context: Last week, Macquarie reported a net profit of $3.72 billion, for the year ending 31 March on the back of improved performance in its asset management and financial services businesses. However, Citi downgraded its FY26/27E profit assumptions by about 4% and said stock valuation is around the five-year average.
Although Citi considered Macquarie Asset Management and the Commodities and Global Markets arms to present modest downside risk, its noted the eventual sale of its North American and European public markets business and the exit from green investments would create reinvestment options.
The source: Citi research
