Macquarie Group Ltd (ASX: MQG) shares are in focus on Wednesday, this time with reports of a potential divestment.
Whilst the company hasn't made any specific announcements, a potential sale could nab the company a hefty profit if true.
Macquarie shares have outperformed the broader market so far this year and are up 23% in that time. At the time of writing, the banking giant's stock is swapping hands at $227.55 apiece.
Here's the latest.
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Macquarie shares in focus
Macquarie shares are in focus again on Wednesday as reports indicate that it might be considering selling its stake in Wavenet, a UK-based IT services provider.
According to Bloomberg, the divestment could be valued at 1.2 billion Great British Pounds, roughly AUD$2.4 billion
While deliberations are still in the early stages, a formal sale process could reportedly kick off next year.
Wavenet was founded in 2000 and offers cybersecurity and cloud services to UK organisations.
It recently agreed to merge with Daisy Corporate Services, a local peer, after completing six other acquisitions since 2021.
Macquarie hasn't confirmed or denied the potential sale.
If it were to proceed, it follows the company's recent sale of its combined 88% stake in data centre provider AirTrunk to private equity group Blackstone for $24 billion earlier this month.
The deal is said to potentially add $1.1–$1.3 billion in performance fees to the bank's profit this year.
Macquarie's banking and financial services (BFS) division has also been rapidly expanding. In July, the company grew its mortgage book by 1.6%, significantly outpacing the broader industry's growth.
This pushed Macquarie's market share in owner-occupier and investor lending to 5.5%.
Where to next?
The big question now is where to next for Macquarie shares. Macquarie's price-to-earnings (P/E) ratio stands at 25 times, higher than many of its global counterparts.
However, when adjusting for estimated growth rates, Macquarie isn't the most expensive.
The stock is also rated a buy from consensus of broker estimates, according to CommSec.
On the fundie side, K2 Asset Management is bullish on the company. Last month, it noted the strength in Macquarie's BFS unit and long track record of growth as key reasons to own the share.
Meanwhile, the bank has consistently shown its ability to target the right industries and deliver for shareholders, making it an "eclectic, yet unique investment opportunity among Australian financials," according to analysts at UBS.
Foolish takeaway
Macquarie shares are in the spotlight amid talks of a potential $2.4 billion sale of Wavenet. However, nothing has been confirmed by the company.
In the last 12 months, the stock is up 30%.
