Shares for investment bank Macquarie Group Ltd (ASX: MQG) have gone gangbusters this year.
The stock price is up almost 47% in 2021. That's despite a 7% fall late last month as news of COVID-19 Omicron hit the headlines. Although, that has been mostly regained since.
Macquarie's valuation has ballooned to the point that it's now the fourth-largest bank in Australia, technically kicking out Australia and New Zealand Banking Group Ltd (ASX: ANZ) from the big four.
So is this wunderkind now fully priced? What does 2022 have in store for Macquarie shares?
Holding into 2022, but looking for dips before buying
Medallion Financial managing director Michael Wayne told The Motley Fool that his team continues to hold Macquarie shares for many clients.
"It has been a good performer over a long period of time."
But with the current price near its all-time high, he's not sure that he'd actively buy the stock right now.
"It is hard to be a buyer at these levels, and our preference would be to buy after a decent pullback," he said.
"In the event of a considerable market pullback, this is definitely one we'd have on the watchlist."
Marcus Today founder Marcus Padley last week named Macquarie as an ASX share he'd hold onto forever.
"In the US, the competition among investment banks is just vicious. Here, if you are a smart, finance-orientated, want-to-be-in-the-market graduate, where'd you go and work?" he posed to Livewire.
"You go and work at Macquarie, you don't go and work in a very institutionalised bank. You work in a bank that has got 14,000 of the smartest financial brains in Australia with one goal in mind: make money. And I think that's a pretty good investment."
Analysts bullish on Macquarie shares
According to CMC Markets, seven out of 14 analysts rate Macquarie shares as a strong buy.
If you include the two who rate it as a moderate buy, that becomes nine of 14 who think investors should buy Macquarie stocks right now. Four rate it as a hold, while just one person is urging clients to sell.
Alphinity Investment Management client portfolio manager Elfreda Jonker told The Motley Fool earlier this month that Macquarie is one of her fund's biggest holdings.
"Even after the last big run-up that we've had, we very much view it as a longer-term quality holding in our portfolio overall," she said.
"It's trading on a PE [ratio] of around 19 times, so that's ahead of its long term average of around 16. But in our view, we do think that the way they are busy changing the business model and really just expanding the different business avenues that they're in, we think this company can continue to generate really strong earning scores."
Macquarie shares closed Monday at $202.50.
