Morgan Stanley downgraded stock from Overweight to Equalweight. See below.
23:45 GMT [Dow Jones] A cycle of upgrading earnings expectations for Macquarie (MQG.AU)
may be drawing to a close, raising the risk of a derating, Morgan Stanley argues. Getting
ahead of that, the brokerage firm drops its stance to equalweight from overweight and its
target on the shares to A$76.50 (US$53.80) from A$93. It sees emerging headwinds for four
of the bank's six operating divisions from a weaker outlook for investment markets.
Investors should brace for modest assets-under-management growth, weaker
equity-market-related activities and lower performance fees. There also are risks from
Macquarie's exposure to energy, resources and commodities. Still, Morgan Stanley
doesn't have any major concerns with Macquarie's business model or balance
sheet. The shares are down 1.3% at A$72.49.
MQG Price at posting:
$71.16 Sentiment: Hold Disclosure: Held
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