The Macquarie Group Ltd (ASX: MQG) share price has been an outstanding performer over the past 12 months. But is the investment bank’s future growth baked in now after a year of strong gains?
In afternoon trading on Friday, Macquarie shares bounced above the $200 mark once again.
On a year-to-date basis, the share price is up 42.7%. For anyone lucky enough to have picked up shares at the 52-week low of $126.51 in January 2021, their return on investment (ROI) is an impressive 59%.
Despite this exceptional performance, two fund managers think there’s still more on the table. Let’s take a look at what they think of the Macquarie share price going forward.
More good times to come for the Macquarie share price?
The past year has been a very rewarding period for investors in the ASX financial sector. In fact, the sector has been the market’s best performer. This is thanks to a strong bounceback in bank revenue and earnings following encouraging monetary policy from the central bank.
Macquarie Group has also been a beneficiary of the improving economic situation globally. In its FY22 first-half result, the company reported a more than doubling of its net profit, increasing 107% to $2.04 billion.
At the same time, assets under management increased 31% to A$737 billion at the end of September. Considering the level of growth, investors might be cautious of reversal, or at least a slowdown, in the business.
However, two fund managers recently shared optimistic perspectives for the Macquarie share price.
In an interview with Livewire, Pengana’s Rhett Kessler and Alphinity’s Stuart Welch both gave the ASX-listed investment bank a buy.
For Welch, the bank offers a well-managed business that has a strong track record for adapting to changing times. The fundie suggested the shift towards green investments is simply another iteration within the company’s journey, as it becomes a major player in net-zero emission ambitions.
Adding to this, Welch noted:
The retail side is taking share from the majors with better service levels and standards. In many respects, the business is doing really well and looks pretty reasonably valued. So it’s a buy for us.
Kessler also tagged the Macquarie share price a buy. While agreeing with Welch, Kessler added that Macquarie maintains strong talent within the company. Given the amplifying contest for talent, the fundie considers the investment bank well-positioned on this front.