The Macquarie Group Ltd (ASX: MQG) share price has been relatively flat following its FY21 results announcement on Friday. Its shares have edged slightly lower, currently down 0.60% for the session, at $157.45.
Big brokers have digested Macquarie’s results and come up with new target prices for where the bank might go next.
Big brokers run the ruler for the Macquarie share price
Morgan Stanley retains its overweight rating for Macquarie shares after its FY21 profit exceeded expectations. The broker was impressed by the diversity of growth options for the bank, highlighting the strong performance of its private markets segment and tailwinds in renewables and infrastructure investments. Its target price edged higher from $172 to $175.
Macquarie’s results also beat Morgans estimates. The broker note highlighted the strong performance in its commodities and global markets division, which offset the weaker or flat performing divisions. Looking ahead, Morgans notes that management observes a flat FY22 profit outlook with positive results from Macquarie Capital and the bank to be offset by profit normalisation in its commodities divisions. Morgans retained an add rating while it increased its target price from $162.30 to $171.
Credit Suisse upgraded its FY22 earnings estimates by 2% due to lower expenses and higher gains from equity investments. The broker also highlighted the positive performance from its commodities trading division and an increase in fees.
Despite the positive commentary coming out of Credit Suisse, the broker retained a neutral rating with a $150 target for the Macquarie share price.
Citi remained sell rated on the Macquarie share price despite acknowledging a strong second-half performance. The broker observes that the company has recovered back to its FY19 profit levels of $3 billion. However, it does not expect growth beyond the $3 billion level until FY24.
Citi believes that Macquarie shares are adequately valued and expectations appear stretched in the near term. The target price was increased from $125 to $140 but represents the lowest target price amongst the broker updates.