Intel stock extends gains after report of possible U.S. government stake
Investing.com - BofA Securities raised its price target on Goldman Sachs (NYSE:GS) to $782.00 from $775.00 while maintaining a Buy rating following the bank’s strong second-quarter performance. The stock, currently trading near its 52-week high with a 25% gain year-to-date, has shown remarkable momentum according to InvestingPro data.
Goldman Sachs reported second-quarter core earnings per share of $10.91, exceeding both BofA and consensus estimates by approximately 12% and 11%, respectively. The earnings beat was primarily driven by exceptional performance in M&A advisory, which increased 71% year-over-year, and equities trading, which rose 36%.
The bank’s CET1 capital ratio stands at 14.5%, significantly above the 10.9% regulatory minimum that takes effect October 1. Management indicated it aims to operate with a 50-100 basis point buffer once there is clarity on capital and liquidity requirements.
BofA Securities made no material changes to its second-half 2025 or fiscal year 2026 earnings per share estimates. The firm sees potential upside to its fiscal year 2026 EPS estimates, which are approximately 8% above consensus, based on stronger revenue growth, improved operating leverage, and excess capital deployment.
The analyst noted that for long-term investors, a 12.5% CET1 ratio could potentially yield return on tangible common equity in the high teens to nearly 20% range, compared to BofA’s current forecasts of 16.1% for fiscal year 2026 and 17.3% for fiscal year 2027. InvestingPro analysis suggests Goldman Sachs is currently undervalued, trading at an attractive P/E ratio of 15.5x relative to its growth potential. For deeper insights into Goldman’s valuation and 13 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Goldman Sachs has seen several significant developments. Morgan Stanley (NYSE:MS) has raised its price target for Goldman Sachs to $706, citing a positive outlook on future earnings and revenue, particularly in the Markets and Asset & Wealth Management sectors. This adjustment reflects a 4% increase in their 2026 earnings per share estimate. Meanwhile, JMP Securities reiterated its Market Perform rating on Goldman Sachs, noting that the company’s strong earnings report met high expectations but did not significantly impact the market reaction. Additionally, Citizens JMP downgraded Goldman Sachs from Market Outperform to Market Perform, removing a previous $600 price target, as the stock’s current valuation appears to reflect its potential returns.
In other news, Goldman Sachs, along with Morgan Stanley and Wells Fargo (NYSE:WFC), agreed to pay a $120 million settlement in the Archegos Capital Management case, addressing allegations of concealed conflicts of interest. The settlement, still pending judicial approval, follows the collapse of Archegos, which heavily invested in ViacomCBS (NASDAQ:PARA) shares. Furthermore, Goldman Sachs is involved in Via Transportation’s revived IPO plans, working alongside Morgan Stanley and Allen & Co. as the company seeks to go public after withdrawing its initial filing in 2021. These recent developments highlight a period of active engagement and strategic adjustments for Goldman Sachs in various financial and legal arenas.
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