Macquarie Group’s third-quarter trading update has been deemed satisfactory by UBS analyst John Storey. Improved guidance for its commodities and global markets business (CGM) now indicates income growth, a step up from earlier flat result projections. Macquarie is a diversified financial group providing asset management, banking, financial, advisory and risk and capital solutions across debt, equity and commodities. The company operates globally.
However, the positive operating outlook is somewhat tempered by a projected higher FY26 tax rate of approximately 31 per cent. According to Storey, this increase could result in an additional tax expense of around $250 million. UBS estimates this would equate to a 5.5 per cent reduction in projected cash profit.
Storey noted positive commentary across Macquarie’s divisions. Markets-facing businesses have shown growth of over 25 per cent compared to the prior corresponding period. The CGM division is underpinned by robust asset finance and commodities performance. Banking and financial services continue to expand deposit and lending activities at a rate exceeding market averages, although margin pressure persists. Macquarie Capital has benefited from asset realisations and its private credit portfolio.
UBS has reaffirmed its buy rating for Macquarie, setting a price target of $235. The analyst noted that Macquarie is currently trading at approximately 17.3 times its forward earnings. In recent trading, Macquarie shares experienced a rise of 0.9 per cent.