The sizeable retrace in Macquarie Group Ltd (ASX: MQG) shares in 2025 could provide an excellent long-term entry point.
That's according to two top asset managers.
Shares in the S&P/ASX 200 Index (ASX: XJO) diversified financial stock are down 1.6% in intraday trade today at $176.17 apiece.
This sees the share price down 20.3% year to date. For some context, the ASX 200 is down 5.8% over this same period.
Now, here's why that underperformance could be set to make a big turnaround.
Are Macquarie shares poised to outpace the market recovery?
"The Macquarie share price tends be leveraged to the broader market," said Fairmont Equities' Michael Gable, who has a buy recommendation on the ASX 200 financial stock (courtesy of The Bull).
"Big falls in the indices are reflected in Macquarie's share price," he said. "However, it works both ways and we believe the sharp sell-off presents an opportunity to buy MQG shares at a top value price."
Gable concluded:
We expect Macquarie's share price to outperform the S&P/ASX 200 index when a stock market recovery gets underway. This diversified financial services provider has a strong track record of performance.
Ord Minnett's Tony Paterno also has an optimistic outlook on Macquarie shares (courtesy of The Bull).
"Macquarie is a global diversified financial services provider. It provides banking services, asset management, capital markets and commodity markets," said Paterno.
According to Paterno:
Despite the market correction, Macquarie Group's share price reflects its high beta nature. The company remains well positioned to leverage global mega trends, offering significant growth opportunities and attractive returns.
And despite the headwinds from the broader market retrace, Macquarie's profits have been holding up well.
"In a third quarter trading update in February, MQG noted fiscal year 2025 net profit after tax was broadly in line with the prior corresponding period," Paterno said.
Commenting on the company's performance on the day of the results update, Macquarie CEO Shemara Wikramanayake said, "Macquarie remains well-positioned to deliver superior performance in the medium term with its diverse business mix across annuity-style and markets-facing businesses."
Also potentially offering ongoing support for the share price, in November, Macquarie approved an extension of its on-market share buyback of up to $2 billion for a further 12 months.
And passive income investors may wish to take note that following this year's sell-down of Macquarie shares, the ASX 200 stock now trades on a 3.7% partly franked dividend yield.
