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Macquarie Group's analyst price target has been revised downward from A$221.24 to A$218.54. Analysts point to a broader earnings recovery lag and persistent macroeconomic pressures in their updated outlook.
Analyst Commentary
Recent analyst reports on Macquarie Group highlight a mix of cautious and skeptical perspectives with a particular focus on the company's recovery trajectory and underlying business risks. The following summarizes key takeaways derived from recent street research:
Bullish Takeaways- Bullish analysts anticipate that once macroeconomic headwinds subside, Macquarie Group's diversified operations could support a stronger medium-term recovery.
- The company’s robust global platform and history of navigating challenging cycles provide a foundation for long-term growth opportunities.
- Some see potential for attractive valuation in the context of a slower sector recovery, presenting possible entry points for long-term investors.
- Bearish analysts argue that the current earnings trough may be broader and more prolonged than other cyclical downturns, which challenges optimistic consensus estimates.
- Persistent macroeconomic pressures and industry volatility are expected to delay any significant improvement in performance.
- Concerns have been raised regarding the pace of earnings recovery, which may remain sluggish relative to previous cycles and sector peers.
- Valuation risks have been highlighted, as slower than anticipated growth could limit upside potential in the near term.
What's in the News
- Macquarie Group held acquisition talks with Carlyle Group this summer, but discussions ended after Carlyle's CEO, Harvey Schwartz, secured investor support for his turnaround plan (Semafor).
- The group is believed to be planning a break-up and sale of its $2.5 billion Paraway Pastoral Company. It aims to sell individual assets to various buyers, with interest expected from superannuation funds and global pension funds.
- LA Semiconductor LLC has engaged Macquarie Group to oversee the marketing and sale of its advanced wafer fabrication facility in Pocatello, Idaho. This highlights Macquarie's continued involvement in the semiconductor sector.
- Macquarie is set to acquire a minority stake of around 40% in Portuguese hospital operator Luz Saúde, outbidding other prominent investment firms. The deal values Luz Saúde at over €1 billion.
- An amendment to Macquarie Group’s constitution proposed at its July 2025 AGM was not carried as a special resolution.
Valuation Changes
- Consensus Analyst Price Target has decreased slightly from A$221.24 to A$218.54.
- Discount Rate has risen modestly, moving from 9.05% to 9.21%.
- Revenue Growth projections have slipped marginally, from 5.34% to 5.26% per year.
- Net Profit Margin has edged up, increasing from 24.00% to 24.05%.
- Future P/E ratio forecast has declined from 21.62x to 21.45x, indicating a moderately lower expected valuation multiple.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.