It’s been a rough year for the Macquarie Group Ltd (ASX: MQG) share price.
The stock cracked a new all-time high of $217.32 in January before plunging into the red amid the release of the company’s full-year earnings in May.
It has continued on a wobbly downwards trajectory since, hitting its 52-week low of $149.51 last week.
Since then, the Macquarie share price has rebounded to trade at $159.49 in late afternoon trading on Monday.
But does the company have what it takes to drive its share price 26% higher to meet (or surpass) the $200 mark in the near future? Well, that depends on who you ask.
Can the Macquarie share price surpass $200?
The Macquarie share price has underperformed against both the S&P/ASX 200 Index (ASX: XJO) and other major banks this year.
Its 25% year-to-date tumble compares poorly against the 12% fall posted by the index and the 14% slump experienced by the worst-performing big four bank stock – Australia and New Zealand Banking Group Ltd (ASX: ANZ).
But brokers are hopeful for the Macquarie share price’s future.
While Goldman Sachs doesn’t think it will reach $200 any time soon, it is tipping gains. Though, it’s not bullish enough to warrant slapping the stock with a buy rating.
The top broker is neutral on Macquarie, dropping its price target to $194.03 following the company’s latest announcement in July. That still represents a potential 22% upside.
Since then, the Reserve Bank of Australia has upped the benchmark interest rate three times to reach 2.6% this month.
That spells both good and bad news for banks. It allows them to reprice their loans and increase their profits, but it also increases risks for their loan books.
But rising rates isn’t what broker Morgans likes about the investment banking giant. The broker likes the bank’s exposure to renewables and infrastructure and its increasing share of the Australian mortgage market.
Morgans has an add rating and a $215 price target on Macquarie shares, my Fool colleague James reports. If all goes how Morgans expects, the banking giant’s shares will clamber back onto the horse over the coming 12 months.
The post Can the Macquarie share price crack the $200 mark again? appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. 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.
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