Those interested in snapping up Macquarie Group Ltd (ASX: MQG) shares have likely poured over the companyâs recent half year earnings.
It posted a $2.3 billion profit for the six months ended 30 September. The investment banking giant also lifted its interim dividend 10% to $3 per share.
The market responded well to the earnings. It bid the Macquarie share price 1.8% higher on the release and it has gained another 5.8% since. The Macquarie share price closed Fridayâs trade at $179.32.
However, thatâs 15% lower than it was at the start of 2022 and 13% lower than it was this time last year. For comparison, the S&P/ASX 200 Index (ASX: XJO) has slipped 6% year to date and 3% over the last 12 months.
But one broker sees hope in the bank stock, tipping it as a buy and predicting its earnings to pick up in the coming years. Hereâs why Baker Young managing portfolio analyst Toby Grimm is bullish on the ASX 200 giant.
What could the future bring for Macquarie shares?
Grimm believes now is a good time to buy shares in ASX 200 investment banking giant Macquarie.
The fundie said, as per The Bull, âthe companyâs diversified business model is appealingâ. But there might be some short-term pain in store for the stock.
Grimm pointed out that, while Macquarieâs first half profit was a 13% increase on that of the prior corresponding period, it also marked a 13% drop on that of the second half of financial year 2022, which came in at around $2.66 billion.
As a result, the fundie thinks the ASX 200 giantâs âfull year will be toughâ, but the future is brighter. Grimm continues:
[B]ut we believe the investment bank is positioned for an earnings recovery in 2024.
Grimm isnât alone in liking the investment bank. Morgans tips it as a buy, with a price target of $214.30. Meanwhile, Goldman Sachs is neutral on the stock, expecting it to rise to $188.35.
The post Looking to buy Macquarie shares? The bank is âpositioned for an earnings recoveryâ: fundie appeared first on The Motley Fool Australia.
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- These ASX shares turned $20,000 into $100,000 in 10 years
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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