MQG -1%: A trading update that was met by some fairly aggressive selling on open this morning, the stock opening ~$180 before recovering strongly throughout the day. They talked to softer conditions for M&A and deal flow, asset sales have also been light on while they highlighted a materially weaker year-on-year trend, although this period last year was a stormer! It looks to MM that MQG earnings are under more pressure than the market thought in the short term, and while the deal pipeline is still looking strong, it looks more and more like the timing of transactions will be pushed into FY25E. The other surprise was tge resignation of Nick O’Kane, the Head of Commodities & Global Markets who pocketed $57.6m last year.
- Today’s update should see small revisions lower in FY24, but the longer term looks fine and Macquarie do generally guide conservatively.
MM remains neutral MQG having exited our position recently
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