Nomura Securities analyst Steven Chubak reiterated a Buy rating and raised his price target on Goldman Sachs (NYSE: GS) to $197.00 (from $195.00) following Q2 results.

Chubak commented, "GS reported 2Q16 EPS of $3.72 vs. our $2.80 estimate and cons. of $3.05. Adjusting for the lower tax rate, core EPS was closer to $3.47. Versus our forecast, the core beat was primarily driven by better DCM and FICC, as well as higher I&L fees and lower non-comp. Despite the headline beat, GS shares underperformed (-120bps vs. flat for Universals). Given better-than-expected FICC / DCM results at peers that have reported so far, revenue strength at GS was, we believe, largely expected, as evident by recent O/P in GS shares into earnings (+9% QTD vs. +6% at peers), while softness in other areas (i.e., Equities, Investment Management) may have disappointed some investors. We remain constructive on GS shares, as we see limited negative revision risk, given the benefits of strong capital stewardship, expense discipline ($700mn savings target), and lower gearing to rates; these should offset IB pressures (YoY and QoQ backlog declines) and 2H trading seasonality. While our estimates were largely unchanged after reflecting 2Q earnings / forward guidance, we raised our TP modestly to $197 (from $195), given stronger-thanexpected capital build."

The firm raised FY16E EPS from $13.75 to $14.34; FY17E EPS from $16.43 to $16.57.

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Shares of Goldman Sachs closed at $161.41 yesterday.