Keefe, Bruyette and woods Analyst David Konrad reiterated his outperform rating on shares of Goldman Sachs Group Inc. (NYSE:GS) and raised the target price to $690 from $686.
The analyst notes that Goldman Sachs posted an impressive quarterly performance, driven by substantial gains in trading and continued growth in asset management.
According to the analyst, trading revenue was up 33% year-over-year despite a tough comparison, and the stock was stable quarter-over-quarter amid the usual seasonal trends.
The company’s strategy to leverage its balance sheet was evident: equity financing increased 16% quarter-over-quarter and 36% year-over-year.
While the stock remains expensive relative to historical multiples of 1.92 times TBV, it is still considered an attractive option for those looking to invest in the capital markets, according to the analyst.
Due to strong earnings from capital markets and asset management, analyst increases 2025 earnings estimate by $1.80 to $47.15 and 2026 earnings estimate by $0.65 to $53. 00 dollars.
The analyst says there was strong demand for deals and backlogs increased quarter over quarter.
The analyst points out that the strength of the Markets was led by stocks, which stood out this quarter with 3.5 billion dollars, exceeding expectations at 1.41 dollars per share, driven by higher intermediation income from both derivatives and products in cash.
Management fees reached $2.8 billion, up 15% and $0.15 per share above KBWe estimates.
According to the analyst, Goldman Sachs also continued to reduce its balance sheet investments, which now amount to $36.5 billion.
price action: GS shares are trading up 0.88% at $611.28 at last check on Thursday.
Photo via Shutterstock.
|
Date |
Firm |
Action |
Of |
TO |
|---|---|---|---|---|
|
February 2022 |
Wells Fargo |
Downgrades |
Overweight |
equal weight |
|
February 2022 |
Morgan Stanley |
Maintains |
equal weight |
|
|
January 2022 |
Odeon Capital |
Downgrades |
Buy |
Hold |
See more analyst ratings for GS
See the latest analyst ratings
UNLOCKED: 5 NEW TRADES EVERY WEEK. Click Now to Get Best Trading Ideas Dailyplus unlimited access to cutting-edge tools and strategies to gain an advantage in the markets.
Get the latest stock analysis from Benzinga?
This article Goldman Sachs Stock May Be Expensive, But It’s One of the Cheapest Ways to Invest in Capital Markets: Analyst originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.