Analysts have revised Macquarie Group’s price target to A$224.48. This reflects a more cautious outlook on earnings recovery and industry headwinds that are expected to moderate near-term performance.
Analyst Commentary
Recent developments in analyst coverage have shed light on differing perspectives regarding Macquarie Group's near-term prospects, reflecting a mix of cautious and optimistic sentiment.
Bullish Takeaways
- Bullish analysts highlight Macquarie Group's ability to navigate complex market environments through its diverse business segments and international reach.
- There is recognition of Macquarie’s historical capacity to adapt to industry headwinds, suggesting some potential for earnings recovery as conditions stabilize.
- Some analysts note that the current share price already reflects much of the downside risk, creating a more attractive valuation for long-term investors.
Bearish Takeaways
- Bearish analysts view the current earnings trough as broader than just a cyclical downturn and indicate more persistent structural challenges for Macquarie Group.
- There is concern that the anticipated pace of earnings recovery may be slower than market consensus, which could weigh on future share performance.
- Ongoing industry headwinds and uncertainties in the macroeconomic environment are expected to limit near-term growth and execution for the company.
- Some analysts have revised their targets lower to reflect caution about Macquarie's ability to return to previous levels of profitability in the short to medium term.
What's in the News
- Macquarie Group held acquisition talks with Carlyle Group this past summer. The negotiations ended after Carlyle's turnaround plan gained investor support (Semafor).
- The company has extended its share buyback plan duration until October 31, 2026.
- Macquarie Group announced an increased interim dividend of AUD 2.80 per share for the period ending September 30, 2025, to be paid on December 17, 2025.
- Macquarie Group is assisting LA Semiconductor LLC in marketing and selling its wafer fabrication facility in Pocatello, Idaho. This reflects ongoing activity in semiconductor manufacturing clients.
Valuation Changes
- Consensus Analyst Price Target remains largely unchanged at A$224.48.
- Discount Rate has marginally decreased from 9.29% to 9.23%.
- Revenue Growth is stable, with no significant change and remains at approximately 5.82% per annum.
- Net Profit Margin remains unchanged at 24.42%.
- Future P/E has slightly decreased from 21.11x to 20.91x, reflecting modestly lowered growth expectations.
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