Bank of America names Goldman top financial pick, gives 3 catalysts

Bank of America analysts are growing more bullish on Goldman Sachs after meeting with chairman and CEO David Solomon. BofA reiterated a buy rating on Goldman Sachs in a note on Tuesday that summarized the meeting, alongside a $563 per share price target. The firm also named Goldman its top pick in its coverage universe, saying it offers “the best risk/reward” thanks to the “potential for positive EPS revisions, and for secular re-rating as the Street better appreciates the revenue/ROE resiliency.” BofA’s price target implies more than 14% upside from Monday’s $492.72 close. GS YTD mountain Goldman Sachs stock. Analysts led by Ebrahim Poonawala attributed the optimistic outlook to three catalysts likely to drive Goldman stock performance in the near future: a forecast uptick in merger and acquisition activity, leadership in asset management and efforts to optimize capital despite headwinds tied to the Federal Reserve’s recent stress test . Solomon struck a more confident tone compared to a year earlier, arguing that Goldman could successfully grow its market share, BofA said, adding that the Wall Street investment bank is poised to “fend off competition, navigate regulatory changes, capitalize on market-share opportunities (organic or M & A)” and seize on “potential for improved franchise efficiency,” driven by artificial intellgience. “We believe it is one of the best financial franchises (and among the strongest risk managers) globally at relatively discounted valuations on mid-teens ROE potential,” Poonawala said. Goldman Sachs stock has advanced about 31% in 2024 through early trading Tuesday.