The Macquarie Group Ltd (ASX: MQG) share price was on form on Tuesday.
The investment bank's shares rose 1.5% to $172.00.
This means the Macquarie share price is up almost 4% since this time last week.
Can the Macquarie share price keep rising?
The good news for investors is that the team at Morgans believes the Macquarie share price can keep rising from here.
According to a recent note, the broker has responded to Macquarie's half-year results by retaining its add rating with a trimmed price target of $214.30.
Based on the current Macquarie share price, this implies potential upside of almost 25% for investors over the next 12 months.
In addition, Morgans is forecasting a partially franked 4% dividend yield over the next 12 months, stretching the total potential return to approximately 29%.
What did the broker say?
Morgans was pleased with Macquarie's half-year results. It commented:
MQG's 1H23 NPAT of A$2.3bn was +13% on the pcp and 9% above Bloomberg consensus (A$2.15bn). We would describe MQG's 1H23 result as a solid, clean performance, with the company again finding a way to better market expectations, highlighting the strength of the franchise. We lift FY23F/FY24F EPS by 1.2%/0.2% reflecting slightly improved earnings forecasts across most divisions. Our PT is largely unchanged. We maintain our ADD call with >10% TSR upside to our price target.
Outside the result, the broker likes the company due to its exposure to structural growth areas and believes the Macquarie share price is trading at an undemanding level. It concludes:
MQG is a quality franchise, well exposed to structural growth areas, and the company is managing a more difficult FY23 environment well. With MQG's share price having pulled back since the start of the year, we see its current PE multiple of 14.5x as undemanding given the sustainable competitive advantages of the business.
