The Macquarie Group Ltd (ASX: MQG) share price has been having a tough time of late.
Since peaking at a 52-week high of $207.94, the investment bank's shares have pulled back 13% to close trade at $181.25 on Wednesday.
While this is disappointing for shareholders, it could be a buying opportunity for the rest of us if Morgans is on the money with its recommendation.
Image source: Getty Images
Macquarie share price could rise materially
Morgans currently has Macquarie shares on its best ideas list. These are the ASX shares that the broker thinks offer the highest risk-adjusted returns over a 12-month timeframe. They are supported by a higher-than-average level of confidence and are its most preferred sector exposures.
According to the note, the broker has an add rating and $222.80 price target on the company's shares.
Based on where Macquarie shares currently trade, this implies potential upside of 23% for investors over the next 12 months.
In addition, the recent weakness in its share price has boosted the potential yield on offer with its shares. Morgans is anticipating a partially franked dividends of $8.28 per share in FY 2023, which equates to a yield of almost 4.6%.
Why is the broker bullish?
Morgans is a fan of Macquarie due to its positive long-term outlook, which is being supported by structural growth markets. In addition, in the near term, the broker believes that recent market volatility will be a boost for its trading businesses. It 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.
All in all, this could make it well worth consider Macquarie shares if you have limited exposure to the sector.
