ASX-listed companies Macquarie Group Limited (AU:MQG) and Aristocrat Leisure Limited (AU:ALL) have witnessed growth of around 15% and more in 2023 so far. Moving ahead, analysts remain bullish and have rated the stocks as Buy.
Macquarie has always been a favorite among analysts based on its diverse portfolio of services and its leading position in the market. Likewise, Aristocrat belongs to the highly growth-oriented industry of gaming and has some solid earnings potential.
Let’s have a closer look at these stocks.
Macquarie Group Limited
Macquarie Group is a global financial services group providing banking and financial services, asset management, commodities, global markets, and capital markets solutions.
Macquarie Group stock has generated a return of almost 16% YTD.
The company recently issued the trading update for its Q3 of the fiscal year 2023. For the period that will end on March 31, 2023, the company is confident of good results driven by its diverse business segments.
The company’s asset management and banking businesses, which generate recurring revenues, saw a decline in its net profit, which was offset by higher profits from the commodities, global markets, and capital businesses. The company’s financial numbers boosted the confidence of investors and analysts, as they exceeded the mandatory benchmarks. The group capital surplus is AU$12.5 billion, and it has a CET1 ratio of 13.3%.
After the trading update, a few analysts reiterated their Buy ratings on the stock. Analyst Andrew Triggs from J.P. Morgan has a target price of AU$206, which implies an upside of 8.9%. Triggs was highly impressed by the company’s H1 2023 results, which “demonstrated the strength and breadth of Macquarie’s diversified franchise.”
Macquarie Group Share Price Target
According to TipRanks’ rating consensus, Macquarie stock has a Moderate Buy rating, based on six Buy and three Hold recommendations.
The average MQG target price is AU$202.57, which shows a change of 7% from the current price level.
Aristocrat Leisure Limited
Based in Australia, Aristocrat Leisure is a technology company with operations in around 20 locations worldwide. The company develops mobile and casino games and also manufactures gaming machines.
The company’s stock gained huge momentum during the pandemic and lockdowns, driven by huge demand for its games. Overall, the stock traded down by 10.5% in the last year. YTD, the stock has gained 16%.
Analysts are bullish on the company mainly due to its dominant position in the market, a solid balance sheet, and its acquisition of Roxor Gaming, which was completed in February 2023. With this acquisition, the company will be able to further expand its presence in real money gaming, which is a highly profitable sector. This will be one of the most important driving forces behind its earnings growth in the future. In tts full-year results for 2022, the company’s solid performance in its gaming segment offset the decline in the Pixel United business.
Analyst Andre Fromyhr of UBS maintained his Buy rating on the stock today. His target price of AU$41.6 has an upside potential of 17.15%.
Is Aristocrat Leisure a Good Buy?
On TipRanks, ALL stock has a Strong Buy rating, based on three Buy and one Hold recommendations.
It has an average target price of AU$39.02, which is almost 10% higher than the current price level.
After a dull year of returns in 2022, the new year brings a lot of hope for investors. Even though overall economic headwinds will continue for some time, some stocks are already witnessing good growth in their share prices.
Both Macquarie and Aristocrat fit perfectly in this situation and could be great additions for investors in 2023.