looking @$150, page-75

An outlier?

Macquarie cut to Sell:

CitiCiti’s Brendan Sproules has downgraded Macquarie Group to Sell and cut his target price to $120 a share.“Macquarie remains an attractive story with structural longer-term opportunities and competitive advantages in real assets and green energy,” Mr Sproules says.“However, the valuation and expectations appear stretched near-term given more obvious concerns in commodities, currency and risks around tax rates.”He notes that Macquarie has re-rated to a forward multiple of about 22 times and while consensus is factoring in an earnings rebound, “expectations look stretched” and Citi is about 10pc below consensus in outer years.And a strengthening AUD and subsiding commodity volatility look to “challenge one of the key drivers of growth in recent years”.“Acquisitions, green energy and infrastructure are the key strategic opportunities for Macquarie (but) potential acquisitions look insufficient to mitigate organic challenges,” he says. “Green energy and infrastructure are longer-dated opportunities, with more modest near-term prospects.”Mr Sproules has trimmed his earnings forecasts by 3-4pc to reflect exchange rate moves.