Macquarie Shares Drop

UBS Cuts Its Macquarie Rating

By REBECCA THURLOW, The Wall Street Journal

SYDNEY -- Macquarie Group Ltd. shares fell 9.6%, touching a 3½-year low, after broker UBS AG cut its rating on the stock and warned the Australian investment bank's profit may be hit by asset write-downs.

UBS analysts cut their rating on Australia's biggest investment bank by revenue to "neutral" from "buy," slashing their price target to 48 Australian dollars (US$41.05) a share from A$60.

"With the global credit crunch and bear market entering its second year, and with little end in sight, we believe this is placing ongoing pressure on Macquarie's businesses and outlook," said UBS analysts Jonathan Mott, Chris Williams and Shu-Ling Liauw in a report.

Read the whole report HERE