Morgan Stanley raises Goldman Sachs stock price target to $706 on higher revenue outlook

Published 17/07/2025, 11:34
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Investing.com - Morgan Stanley (NYSE:MS) has raised its price target on Goldman Sachs (NYSE:GS) stock to $706.00 from $680.00 while maintaining an Equalweight rating. The stock, currently trading at $708.82, sits near its 52-week high of $726, having delivered an impressive 44% return over the past year.

The 4% increase in the price target reflects Morgan Stanley’s updated projections for Goldman Sachs’ future performance, particularly in 2026.

Morgan Stanley has raised its 2026 earnings per share estimate by 4% to $54.33, citing expectations for higher Markets revenues, increased Asset & Wealth Management revenues, lower share count, and slightly higher Investment Banking revenues.

These positive factors are partially offset by higher anticipated expenses, according to Morgan Stanley’s analysis.

The new price target applies a 13x target 2026 price-to-earnings multiple, which remains consistent with Morgan Stanley’s previous valuation approach for Goldman Sachs.

In other recent news, Goldman Sachs has been involved in several key developments. The company recently reported strong earnings, yet the market response was subdued due to high expectations. JMP Securities maintained its Market Perform rating on Goldman Sachs, citing that the stock is fairly valued despite the bank’s potential to gain more market share and benefit from a softening regulatory environment. Citizens JMP also downgraded Goldman Sachs from Market Outperform to Market Perform, noting that the stock’s current price reflects a balanced risk/reward profile. Additionally, Goldman Sachs is assisting Via Transportation in reviving its initial public offering plans, after the company withdrew its previous filing in 2021.

Moreover, Goldman Sachs, along with Morgan Stanley and Wells Fargo (NYSE:WFC), agreed to a $120 million settlement in a lawsuit related to the Archegos Capital Management collapse. The lawsuit alleged that these banks concealed conflicts of interest during ViacomCBS (NASDAQ:PARA) share sales. Meanwhile, Goldman Sachs has been engaged by Aquiline Capital Partners (WA:CPAP) to explore a potential sale of Quicken, which could value the financial software company at over $1.5 billion. These recent developments highlight significant activities involving Goldman Sachs across various sectors and markets.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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