Shares in Macquarie Group Ltd (ASX: MQG) have been performing well over the past few months. The question is, do they have further to run?
Image source: Getty Images
Macquarie shares on a bull run
The shares have improved from around $190 in March to $257.92 at the time of writing, up 20.6% over a 12-month period.
The company known as "the millionaire's factory" this week announced that Chief Executive Officer Shemara Wikramanayake will retire in November, with Greg Ward to take over the top job.
The analysts at Jarden have run the ruler over the company following its management change and believe it still remains a sound investment.
But what sort of return will it deliver? I'll get to that later. First, let's see what the Jarden analysts are saying about the company.
The analysts, in a note published on Thursday following the Macquarie annual general meeting, said all four of Macquarie's divisions were performing strongly for the first time since FY22.
They added:
MQG printed strong 2H26 results … due to investment gains, trading and risk management (energy volatility) and released constructive short term guidance. Today at its AGM, it held that outlook except for a tweak to banking and financial services. Banking and financial services continues to win share on both sides of the balance sheet by leveraging a superior fully digitised core with 'no hoops, no catches'.
Jarden said Macquarie indicated that Macquarie Asset Management had exited low-margin and low-growth offshore public markets, with that capital to be recycled into higher-growth private markets.
They added:
Recent data centre divestments (AirTrunk, Aligned) underwrite a rich vein of performance fees over the forthcoming years. There are plenty of assets to invest, sell and recycle across the key megatrends of Decarbonisation, Digitalisation, Demographics, and Deglobalisation.
Macquarie shares look fully-priced
Jarden has a buy rating on Macquarie shares, but has a price target of $250 on the company, below the current share price.
They are projecting that Macquarie will pay a dividend yield of 3.4%.
They noted that Mr Ward was a long-time Macquarie employee, joining the company in 1996.
His elevation to the top job aligns with the company's historical preference for promoting from within.
Mr Ward said in a statement on Thursday:
I'm honoured to be asked by the Board to succeed Shemara as Macquarie CEO. Shemara leaves Macquarie incredibly well positioned, with each of our businesses performing strongly. I look forward to working with the Board, management and our entire Macquarie team to build on Shemara's legacy for the benefit of all of our stakeholders.
