The Macquarie Group Ltd (ASX: MQG) share price was a decent performer in the last financial year.
The investment bank's shares recorded a gain of just over 8% for the period. This is just a touch short of the performance of the ASX 200 index over the 12 months.
But that was the last financial year. Will it be able to build on this in FY 2024? Let's take a look and find out!
How will the Macquarie share price fare in FY 2024?
The good news is that a number of brokers believe that the Macquarie share price could rise meaningfully over the next 12 months.
For example, analysts at Morgan Stanley, Morgans, and UBS all see potential for double-digit returns over the next 12 months.
In respect to Morgans, its analysts have the bank's shares on their best ideas list with a $201.80 price target.
Based on its current share price of $177.62, this implies a potential upside of 13.6% for investors before dividends.
And if we include the $6.75 per share dividend the broker is forecasting in FY 2024, which equates to a yield of 3.8%, the total potential return stretches to approximately 17.4%.
Commenting on its reason for including Macquarie on its best ideas list, Morgans said:
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, based on what Morgans is saying about its valuation and outlook, this could make Macquarie a top option for investors that are looking for banking sector exposure outside the big four banks in FY 2024.
