Can the Macquarie share price get back over $200 this year?

The Macquarie Group Ltd (ASX: MQG) share price has risen by 14.4% since 17 June 2022. That compares to a rise of almost 10% in the S&P/ASX 200 Index (ASX: XJO).

Macquarie is a global investment bank, generating income and profit from across the world.

The Macquarie share price has still fallen by 13.5% over 2022 to date, indicating it may not be impervious to the effects of strong inflation and rising interest rates.

Macquarie shares hit a 2022 low in mid-June but they have been steadily rising since. That low came as investors were getting used to central banks, such as the Reserve Bank of Australia (RBA), ramping up interest rates at a rapid rate.

But, with the Macquarie share price rising over the past couple of months, is there still an opportunity for it to hit $200 in 2022?

Brokers are mostly optimistic on the Macquarie share price

Experts have had their chance to review Macquarie’s FY23 first quarter update.

The investment bank said that it experienced “favourable trading conditions” with the FY23 first quarter operating group contribution “up” year over year, though conditions did “soften” during the quarter.

Broker Morgan Stanley said it thinks that the first quarter, which was expected to be down, demonstrated enough that FY23 will meet or beat forecasts for this financial year. Morgan Stanley has a price target of $218, which implies a rise of almost 20%. The rating is ‘overweight’.

The broker Ord Minnett has a price target of $202 on the investment bank, with a potential rise of around 10%. It also said the first quarter was stronger than expected. Ord Minnett’s rating is ‘buy’.

Meantime, UBS has a price target on Macquarie of $200. It also thought the first quarter was better than expected. Its rating is ‘neutral’.

However, while Citi is also ‘neutral’ on the investment bank, the price target is just $172. That implies a possible drop of 6%. It’s concerned about interest rates going up.

A price target is where the broker thinks the share price will be in 12 months. These price targets were given in July, but it’s certainly possible that the Macquarie share price could hit these numbers before the end of 2022.

What next?

Macquarie is expecting to report its FY23 half-year result on 28 October 2022.

Referring to the outlook, Macquarie said in its FY23 first quarter update that it will “continue to maintain a cautious stance, with a conservative approach to capital, funding, and liquidity that positions us well to respond to the current environment”.

It also said:

Macquarie remains well-positioned to deliver superior performance in the medium-term. This is due to our deep expertise in major markets, strength in business and geographic diversity and ability to adapt the portfolio mix to changing market conditions, an ongoing program to identify cost-saving initiatives and efficiency, a strong and conversative balance sheet and a proven risk management framework and culture.

Macquarie share price snapshot

Over the last month, Macquarie shares have gone up more than 5%.

The post Can the Macquarie share price get back over $200 this year? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Are Coles shares an ASX buy ahead of the company’s earnings next week?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Shopping Centres Australasia share price slips on FY22 results
• Endeavour share price outperforms on Tuesday to smash new, all-time high

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/NoGD1Cg