Intel stock spikes after report of possible US government stake
Investing.com - Citizens JMP analyst Devin Ryan downgraded Goldman Sachs (NYSE:GS) from Market Outperform to Market Perform, removing the previous $600 price target. According to InvestingPro data, Goldman Sachs currently trades at a P/E ratio of 16.18x with a market capitalization of $206.59 billion.
The downgrade comes after Goldman Sachs shares reached over $700, representing a significant increase from approximately $220 when Citizens JMP initially upgraded the stock to Market Outperform in January 2020. The stock has delivered impressive returns, gaining nearly 50% over the past year and 24.34% year-to-date, according to InvestingPro data, which offers 13 additional valuable insights about the company.
Citizens JMP noted that much of their original investment thesis has already played out, with Goldman Sachs gaining more market share in its Institutional business than was widely appreciated while raising more assets under management than most publicly traded Alternative Asset Managers.
At current price levels, Citizens JMP believes Goldman Sachs stock is trading at approximately twice book value, which suggests the market is already pricing in return on equity (ROE) in the upper-teens compared to Citizens JMP’s mid-teens estimate for 2026.
While maintaining a bullish outlook on Goldman Sachs’ business fundamentals, Citizens JMP now sees the risk/reward profile as balanced and will evaluate potential new entry points or developments that could change their valuation framework.
In other recent news, Quicken Inc. is exploring a potential sale that could value the company at over $1.5 billion. Aquiline Capital Partners (WA:CPAP), the current owner, has engaged Goldman Sachs to assist in finding potential buyers, although no final decision has been made, and Aquiline might retain ownership. Meanwhile, Goldman Sachs was downgraded by HSBC from Hold to Reduce, despite the price target being raised to $627. HSBC’s analysis suggests that the current stock price already reflects the best-case scenario for the company. Additionally, Goldman Sachs President and COO John Waldron indicated that more banking consolidation is expected within European countries, although cross-border mergers seem less likely.
In another development, Jennifer Garner’s organic baby food company, Once Upon a Farm, has filed confidentially for an IPO in New York. The company, which aims to go public possibly this year, could be valued at approximately $1 billion, with Goldman Sachs and JPMorgan as lead underwriters. This comes amid a partial recovery in the U.S. IPO market, with recent debuts showing strong performance.
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