After Macquarie Group's 7% 1H profit beat and indications from management of a strong 2H outlook for Macquarie Capital and commodities, Morgan Stanley raises its target price to $245 from $240. The Overweight rating is unchanged. Industry view in-line.
The broker also likes that green revenues are growing and anticipates a less capital-intensive mix for Green Investment Group (GIG). This segment will move into Macquarie Asset Management (MAM) from FY23, which is expected to lead to a multiple re-rate.
The group is raising $1.5bn to provide "additional flexibility to invest in new opportunities".
Sector: Diversified Financials.
Target price is $245.00.Current Price is $197.83. Difference: $47.17 - (brackets indicate current price is over target). If MQG meets the Morgan Stanley target it will return approximately 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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