Update shared on 29 Oct 2025
Fair value Increased 2.41%Analysts have modestly raised their price target for Macquarie Group from A$218.54 to A$223.80. They cite expectations of a gradual earnings recovery, slightly improved revenue growth, and higher profit margins, despite ongoing industry headwinds.
Analyst Commentary
Recent research has provided a range of perspectives on Macquarie Group’s outlook, with analysts focusing on drivers such as the pace of earnings recovery, competitive pressures, and valuation implications.
Bullish Takeaways
- Bullish analysts highlight expectations for a gradual recovery in Macquarie’s earnings and point to improving revenue trends that support the raised price target.
- There is optimism around higher profit margins, with recent performance suggesting potential for modest operational leverage as conditions stabilize.
- Improved revenue growth projections have contributed to more favorable valuation assumptions and reinforce the view that Macquarie’s long-term fundamentals remain solid despite industry headwinds.
Bearish Takeaways
- Bearish analysts caution that Macquarie’s earnings trough could extend beyond a typical industry downturn, which could lead to a slower-than-anticipated recovery.
- Uncertainty regarding the timing of earnings normalization may limit near-term upside for the stock and keep some investors on the sidelines.
- Concerns remain regarding competitive pressures and the sustainability of margin improvements, which could weigh on future valuation multiples.
What's in the News
- Macquarie Group reportedly held talks to acquire Carlyle Group, but discussions ended this summer as Carlyle's CEO gained investor support (Semafor).
- Macquarie Group is believed to be working towards breaking up and selling its $2.5 billion Paraway Pastoral Company, as no single buyer has emerged for the whole operation. Potential buyers include superannuation funds, Canadian pension funds, and Middle Eastern investors.
- LA Semiconductor LLC has engaged Macquarie Group to oversee the marketing and sale of its wafer fabrication facility in Pocatello, Idaho.
- Macquarie Group is set to acquire a minority stake of around 40 percent in Portuguese hospital operator Luz Saúde, S.A., outbidding major global rivals. The transaction could value Luz Saúde at over €1 billion.
Valuation Changes
- Consensus Analyst Price Target has risen slightly from A$218.54 to A$223.80, reflecting an improved outlook.
- Discount Rate edged up marginally from 9.21 percent to 9.21 percent, suggesting a minor adjustment in risk assessment.
- Revenue Growth estimate increased modestly, moving from 5.26 percent to 5.38 percent.
- Net Profit Margin improved from 24.05 percent to 24.23 percent, indicating slightly better profitability expectations.
- Future P/E ratio climbed marginally from 21.45x to 21.74x, reflecting revised earnings forecasts and valuation trends.
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.