Benzinga - by Priya Nigam, Benzinga Staff Writer.
Shares of Goldman Sachs Group Inc (NYSE:GS) were heading south in early trading on Monday.
Investors who are being cautious due to the recent rally in the stock run the risk of "losing out on significant alpha generating opportunity," according to Bank of America Securities.
The Goldman Sachs Analyst: Ebrahim Poonawala maintained a Buy rating and price target of $525.
The Goldman Sachs Thesis: Goldman Sachs offers "better EPS defensibility relative to retail banks, especially if Main Street credit quality worsens," Poonawala wrote in a note.
Check out other analyst stock ratings.
Poonawala mentioned five drivers of stock outperformance:
- Earnings upside due to recovering investment banking activity
- Capital optimization by reducing private investments, as this lowers regulatory capital requirements
- Exposure to the investment super-cycle, including "climate transition/re-shoring, AI led investment spend, generational wealth transfer"
- Shift in business mix towards higher P/E asset management revenues
- Better execution with consumer distractions being put behind, which improves the bank's ability to capitalize on growth opportunities
GS Price Action: Shares of Goldman Sachs had declined by 0.9% to $452.47 at the time of publication on Monday.
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Latest Ratings for GS
| Feb 2022 | Wells Fargo | Downgrades | Overweight | Equal-Weight |
| Feb 2022 | Morgan Stanley | Maintains | Equal-Weight | |
| Jan 2022 | Odeon Capital | Downgrades | Buy | Hold |
View the Latest Analyst Ratings
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