Shares of Australia-based Macquarie Group Limited (AU:MQG) declined by 3.41% as of writing after the company reported that its first-half operating performance for FY25 was flat compared to the prior corresponding period. Nonetheless, the company stated that it remains well-positioned to deliver robust performance in the medium term due to its diverse businesses.
Macquarie Group is a global financial services group that provides various solutions. Year-to-date, MQG stock has gained 9.2% in trading.
Snapshot of Macquarie’s Q1 Update
According to Macquarie’s brief update on the first quarter of FY25, its market-facing divisions, Commodities and Global Markets (CGM) and Macquarie Capital, reported a lower combined net profit compared to the previous period. This was mainly due to the timing of asset realizations in Macquarie Capital.
Speaking of its annuity-style businesses, Macquarie Asset Management (MAM) and Banking and Financial Services (BFS), net profit contribution for Q1 was overall consistent with the previous period. This stability was supported by volume growth, reduced operating expenses, and lower credit impairment charges in BFS. Meanwhile, MAM managed AU$915 billion in assets as of the end of June, a 2% decrease from the end of the previous quarter.
Moving forward, in the short term, the company continues to adopt a cautious approach, maintaining conservatism in capital, funding, and liquidity, which positions it effectively to navigate the current environment.
Is Macquarie a Good Stock to Buy?
Following Macquarie’s update, UBS reiterated a Hold rating on MQG stock, predicting a flat growth rate in the stock price.
According to TipRanks’ consensus, MQG stock has received a Hold rating based on three Buys, five Holds, and one Sell recommendation. The Macquarie share price forecast is AU$196.02, which is 2.6% below the current trading levels.
