Macquarie is set to benefit from a capital markets recovery that's "firmly on track" according to Morgan Stanley after its US Financials Conference.
Morgan Stanley analyst Andrei Stadnik says a stable cost of capital is helping the M&A recovery and a US rate cut could "take us to full speed".
"Macquarie is the overall standout beneficiary of private markets flywheel re-accelerating in our Australian coverage," he says.
Stadnik expects Macquarie's FY25 earnings to grow 22 per cent on-year, supported to a large extent by capital market revenues recovery and lumpy revenues.
He also notes that Macquarie has been growing its private credit book, and has structural growth options in insurance and alternative asset management, and has equity stakes in seven data centres globally.
Morgan Stanley is Overweight rated with a $215 share price target.
MQG last up 2.9 per cent at $196.11.
