deutsche on mqg, page-8

BA-Merrill Lynch 10/02/2010 1 Buy, Medium Risk $69.00 45.8%
The market was disappointed by Macquarie's downbeat update suggesting second half earnings would fall short of expectation. But the broker has always seen 2010 as a year of capital and regulatory headwinds, and is looking forward to 2011 and beyond to justify its Buy rating.

The broker is encouraged by the Group's expansion plans for the Securities division and notes a reasonable M&A pipeline. The new balance between staff compensation and return on equity should also please investors. Provided MQG can draw sufficient productivity from new staff and operations the broker sees around 30% earnings growth over 2010-13.

JP Morgan 10/02/2010 3 Neutral $54.96 16.1%

Post the operational briefing from management the broker has not adjusted its earnings estimates as the guidance offered was broadly in line with its numbers.

The broker sees better relative value in the major Australian banks at present and so post the update it retains its Neutral rating on the stock.
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