What’s the outlook for the Macquarie share price in July?

The Macquarie share price has been on a bumpy ride in 2022, trading 18% down year to date.

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Key points

  • Macquarie shares have been trading down in recent weeks in tandem with the broader financials sector
  • Despite this, brokers are still constructive and reckon the share price can continue heading north 
  • In the past 12 months, the Macquarie share price has clipped a 7% gain

The Macquarie Group Ltd (ASX: MQG) share price has been on a bumpy ride in 2022, trading 18% down so far this year to date.

ASX investors have pushed the Macquarie share price a further 8% into the red in this past month of trade, with the final trading day of June yet to complete.

In broader market moves, the S&P/ASX 200 Financials Index (ASX: XFJ) has also slipped 11% in the past month.

How’s July look for the Macquarie share price?

ASX banks have traded down in June amid uncertainty on Australia’s housing and mortgage markets looking ahead.

In addition to the traditional banking model, Macquarie’s operations are spread across several adjacent markets. These include capital markets, commodities, real assets, infrastructure, and asset management.

Analysts have recognised this strength and reckon there’s more to look forward to if the investment bank can stick to its track record.

The Wilsons team of analysts wrote in a recent note that “the medium to long-term opportunity for the [Macquarie] group is significantly stronger than other large cap financials on the market”.

Meanwhile, JP Morgan reckons the bank’s annuity division looks set to strengthen due to growth in Macquarie Asset Management (MAM).

JP Morgan is overweight on Macquarie and values the bank at a price of $218 per share.

In a research note, the broker said:

MAM [is] well placed to benefit from structural demand for alternative asset classes and MIM to benefit from several recent acquisitions, including Waddell & Reed.

Growth should be supported by significant deployment of capital into all operating divisions, given a healthy capital surplus.

We still see modest upside to our valuation, particularly given our forecast of a greater than 15% ROE in FY23-25.

In assigning a buy rating, JP Morgan joins another eight analysts telling their clients to buy Macquarie shares at today’s price, according to Bloomberg data.

Macquarie opened today’s session at $166.64, down 0.86% on yesterday’s close.

Meanwhile, four rate it a hold, whilst Credit Suisse has the sole sell rating. From this list, the consensus price target is $203 per share, suggesting considerable upside should that materialise.

In the past 12 months, the Macquarie share price has clipped a 7% gain.

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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