There were several positives in a market update by Macquarie Group at its AGM, according to Morgans.

Firstly, key Banking and Financial Service business drivers continue to see healthy growth, with deposits, home loans and funds on platform all rising by between 4%-9% over the quarter. Secondly, Macquarie Infrastructure and Real Assets raised and deployed around -5.5bn of capital in 1Q21 and has $25bn of dry powder to deploy as at June 2020. Finally, 1Q21 surplus regulatory capital increased, driven by a reduction in business capital requirements on reduced derivative/ loan exposures in the Commodities and Global Markets division.

Due to market uncertainty the company has not provided FY21 guidance at this stage.

Morgans sees Macquarie Group well positioned to seize on opportunities post covid-19 disruptions.

Add rating is maintained. Target is increased to $133.40 from $121.50.

Sector: Diversified Financials.

Target price is $133.40.Current Price is $126.00. Difference: $7.40 - (brackets indicate current price is over target). If MQG meets the Morgans target it will return approximately 6% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2020 Acquisdata Pty Ltd., source FN Arena