The Macquarie Group Ltd (ASX: MQG) share price is trading lower with the market on Wednesday afternoon.
At the time of writing, the investment bank's shares are down over 1% to $170.90.
This means the Macquarie share price is now down almost 20% since the start of the year.
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Is the Macquarie share price in the buy zone now?
One leading broker that sees plenty of value in the Macquarie share price is Morgans.
According to a recent note, the broker has an add rating and $215.00 price target on the company's shares.
This implies potential upside of almost 26% for investors over the next 12 months. And that's before dividends!
Morgans is expecting a partially franked $7.07 per share dividend in FY 2023. This equates to a 4.1% dividend yield, which stretches the total potential return to a very attractive 30%.
Why is it bullish?
The note reveals that Morgans is bullish on the investment bank due to its exposure to a number of long term structural growth areas and its ongoing market share gains in Australian mortgages.
Its analysts explained:
We continue to like MQG's exposure to long-term structural growth areas such as infrastructure and renewables. The company also stands to benefit from recent market volatility through its trading businesses, while it continues to gain market share in Australian mortgages.
And while the broker acknowledges that it will be hard for Macquarie to cycle FY 2022's impressive performance, it thinks investors should look beyond this and focus on the future.
In our view, it was hard to fault MQG's FY22 result, which benefitted from strong performances in CGM and Macquarie Capital. The only real negative, in our view, is it will be difficult for MQG to cycle such a standout performance in FY23. We anticipate some near-term earnings volatility over FY23 but we like MQG's favourable longer-term growth profile and consistent history of delivering strong returns (~15% average ROE over time).
