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DJ Macquarie May Take High AUD Hit -- Market Talk

· 02/04/2021 17:50

22:50 GMT - Macquarie's valuation and expectations appear stretched near-term due in part to risks around a high AUD, says Citi. This is despite the Australian company remaining an attractive story with structural longer-term opportunities and competitive advantages in real assets and green energy, the investment bank notes. "Adjusting to Citi's $0.80 Australian dollar, consensus is factoring in an unrealistic 40% underlying earnings growth in FY 2022," says Citi. Factoring in Citi's house view of a A$0.80 Aussie dollar, it downgrades Macquarie's earnings forecasts by 3-4%. Its target price also falls 4% to A$120.00, and Citi downgrades the company to sell from neutral. Macquarie was last down 0.3% to A$134.70. (alice.uribe@wsj.com)

(END) Dow Jones Newswires

February 04, 2021 17:50 ET (22:50 GMT)

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