High-profile stockbroker Angus Aitken has surprisingly endorsed home-grown investment bank Barrenjoey, forecasting a potential tripling in value over the next five years despite widespread criticism from rivals. This comes after Magellan Financial’s (MFG) ticker was retired on Monday, replaced by BJY to reflect the $1.6 billion merger announced in March. The merger combined Barrenjoey’s trading and corporate advisory operations with Magellan’s decades-old funds management business, creating a diversified financial services firm.
While Barrenjoey’s stock has plunged by approximately one-third from its March peak, Aitken contends the firm is being unfairly judged by competitors, attributing their criticism to likely staff losses and envy. “It feels as if all [Barrenjoey’s] rivals wish them to fail and look at the company with jaded glasses,” Aitken commented. He views Barrenjoey as a business that has rapidly grown from zero to nearly $600 million in revenue, with the capacity to reach $1 billion and beyond with increasing margins. Currently trading at $7.82, implying a $2.3 billion market capitalisation, Aitken projects the share price could hit $30 within five years, translating to a $10 billion market value.
Aitken likened Barrenjoey’s current opportunity to the early days of Macquarie Bank some 40 years ago, when it too was seen by rivals as an overvalued start-up. His conviction was further strengthened after observing independent investment banking boutiques like PJT Partners, Evercore, and Piper Sandler during a recent US trip, noting similarities and Barrenjoey’s potential to expand into new segments such as capital solutions. Aitken believes Barrenjoey’s leadership, specifically Chief Executive Brian Benari and founders Guy Fowler and Matthew Grounds, are central to this opportunity, highlighting their extensive client relationships and experience with major entities from BHP to Brookfield.
