Those interested in snapping up Macquarie Group Ltd (ASX: MQG) shares have likely poured over the company's recent half year earnings.
It posted a $2.3 billion profit for the six months ended 30 September. The investment banking giant also lifted its interim dividend 10% to $3 per share.
The market responded well to the earnings. It bid the Macquarie share price 1.8% higher on the release and it has gained another 5.8% since. The Macquarie share price closed Friday's trade at $179.32.
However, that's 15% lower than it was at the start of 2022 and 13% lower than it was this time last year. For comparison, the S&P/ASX 200 Index (ASX: XJO) has slipped 6% year to date and 3% over the last 12 months.
But one broker sees hope in the bank stock, tipping it as a buy and predicting its earnings to pick up in the coming years. Here's why Baker Young managing portfolio analyst Toby Grimm is bullish on the ASX 200 giant.
What could the future bring for Macquarie shares?
Grimm believes now is a good time to buy shares in ASX 200 investment banking giant Macquarie.
The fundie said, as per The Bull, "the company's diversified business model is appealing". But there might be some short-term pain in store for the stock.
Grimm pointed out that, while Macquarie's first half profit was a 13% increase on that of the prior corresponding period, it also marked a 13% drop on that of the second half of financial year 2022, which came in at around $2.66 billion.
As a result, the fundie thinks the ASX 200 giant's "full year will be tough", but the future is brighter. Grimm continues:
[B]ut we believe the investment bank is positioned for an earnings recovery in 2024.
Grimm isn't alone in liking the investment bank. Morgans tips it as a buy, with a price target of $214.30. Meanwhile, Goldman Sachs is neutral on the stock, expecting it to rise to $188.35.
