Citi notes Macquarie Group has reported a fourth consecutive quarter averaging around $1bn in net profit after tax, after first half profit after tax of $2,043m. Given market conditions, the broker expects the trend to continue for the next two quarters. 

While the broker notes Macquarie Group is well placed to benefit from an evolving energy crisis, an acceleration in equity investments is offering sustainability to outer-year results. 

Citi increases its FY22 net profit after tax forecast 17% to $4,145m and forecasts for FY23 and FY24 by around 10%, noting it expects earnings to moderate in FY23 and FY24.

The rating is upgraded to Buy from neutral and the target price increases to $226.00 from $200.00.

Sector: Diversified Financials.

Target price is $200.00.Current Price is $197.83. Difference: $2.17 - (brackets indicate current price is over target). If MQG meets the Citi target it will return approximately 1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena