Macquarie Group Ltd (ASX: MQG) shares have climbed higher into the green on Wednesday. At the time of writing, the shares are up around 0.2% higher and changing hands at $249.60.
At one point this morning, the share price reached an all-time record high of $250.54 a piece.
Macquaire's shares are now around 23% higher for the year to date and 18% higher than this time last year.
Like many of the ASX bank stocks, Macquarie shares slumped through late February and March. But thanks to a strong recovery in early April, it is now the best-performing ASX 200 bank stock by far, and its share price is smashing previous record highs.
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Are Macquarie shares a buy, sell, or hold after the latest rally?
Market Index data shows that brokers are mostly bullish on the bank stock's outlook. The majority have a buy rating on the shares, but the $253.75 average target price now implies a small 2% potential upside.
TradingView shows that some analysts are even more bullish. Again, the majority (nine out of 15) have a buy or strong buy rating on the shares. The average target price of $256.69 implies a potential 3% upside at the time of writing. But the maximum $290.17 target price implies the shares could jump another 16% over the next 12 months.
Morgan Stanley is one of the more bullish brokers. It has a buy rating and a $263 price target on Macquarie shares.
Why are Macquarie shares going from strength to strength?
Macquarie is the fifth-largest bank listed on the ASX by market capitalisation. But it's more than just a bank. Macquarie also provides banking, financial, advisory, investment, and fund management services across 34 markets globally.
That means it has exposure to a range of sectors and markets, including commodities trading, infrastructure deals, asset management, and capital markets.
The bank also makes around two-thirds of its money internationally, which reduces the risk of being too focused on one region. It also means that, unlike many of its Australian peers, it isn't reliant on lending margins.
Instead, its diversity means that it can remain stable, or even benefit, when markets are going through periods of volatility as we've endured throughout the first half of 2026. This makes it a very attractive investment option for exposure to financial shares, but without the concentration and risk of the local market.
What about its finances?
The investment bank posted its third-quarter trading update for FY26 in February this year, revealing that the business has experienced strong quarterly growth.
Macquarie delivered more good news to investors last month when it posted a stronger-than-expected FY26 result and announced growth across all its operating groups.
The company posted a 30% year-on-year increase in NPAT to $4.85 billion. It noted that the second half of the financial year was particularly strong, with H2 NPAT coming in at $3.19 billion, up 93% from the first half.
Management also declared a 7.7% increase in its final partly-franked dividend to $4.20 per share.
There hasn't been any price-sensitive news out of the company since its results announcement, so it's likely that investors are still buying into the shares on the expectation of more growth ahead.
Macquarie's latest results and share price performance certainly demonstrate why its valuation is sitting at an all-time high today.
