Keefe, Bruyette & Woods analyst David Konrad has maintained his Outperform rating for Goldman Sachs Group Inc (NYSE:GS) while adjusting his price target upwards from $686 to $690. According to Konrad, Goldman’s latest quarterly performance was exceptional, largely boosted by significant trading gains and steady growth within its Asset Management division.
Despite facing challenging comparisons, the firm’s trading revenue jumped 33% from the previous year, with stable equities performance quarter-over-quarter, aligning with typical seasonal patterns. Goldman Sachs has strategically leveraged its balance sheet, resulting in equity financing increasing 16% from the last quarter and a notable 36% year-over-year rise.
While Goldman Sachs stock may seem expensive based on historical multiples, currently trading at 1.92 times its tangible book value, it’s still viewed as an appealing opportunity for those eager to engage in capital markets. This perspective is bolstered by robust revenues from both capital markets and asset management, prompting the analyst to boost the 2025 earnings estimate by $1.80 to $47.15, and the 2026 estimate by $0.65 to $53.00.
The demand for deal-making remains strong, with backlogs growing since last quarter. The Equities segment notably led the Markets, achieving $3.5 billion this quarter and exceeding expectations, driven by heightened revenue from derivatives and cash products. Meanwhile, management fees hit $2.8 billion, a 15% jump, outperforming KBWe’s projections by $0.15 per share. Goldman Sachs has also continued to pare down its on-balance-sheet investments, which now stand at $36.5 billion.
At the last check on Thursday, GS shares saw a 0.88% increase, trading at $611.28.
For more analysis and ratings on Goldman Sachs, stay tuned with the latest updates.
