'Protection Against the Coming Storm': Goldman Sachs Pops on BofA Upgrade to Buy

June 29, 2022 8:44 AM EDT
Get Alerts GS Hot Sheet
Price: $309.00 --0%

Rating Summary:
    20 Buy, 17 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 6 | Down: 7 | New: 15
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Bank of America analyst Ebrahim Poonawala upgraded Goldman Sachs (NYSE: GS) to Buy from Neutral with a $380.00 per share price target (up from $360.00).

The analyst sees positive risk/reward from current levels in comparison to peers. Poonawala adds that GS offers “protection against the coming storm.”

“We see the stock as well-positioned to outperform in what is likely to be a worsening economic backdrop that could weigh more materially on the EPS outlooks for its balance sheet lending heavy peers. As a result, we see the relative risk/reward as attractive with shares trading at 1.1x P/TBV and 8.1x 2023e P/E,” Poonawala told clients.

Furthermore, the analyst notes that GS could benefit from a volatile geo-political backdrop and monetary policy as these two could “drive elevated trading activity for the foreseeable future.”

On a negative note, Poonawala is below consensus of ‘22/’23e EPS, but notes that “the risk of negative EPS revisions is discounted at current valuations.”

Goldman Sachs shares are up 1% in pre-open Wednesday.

By Senad Karaahmetovic

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Goldman Sachs, Pre Market Movers, BofA/Merrill Lynch, Senad Karaahmetovic