Evercore ISI analyst Glenn Schorr reiterated an Outperform rating and $623.00 price target on Goldman Sachs (NYSE: GS)

The analyst comments "GS 4Q24 $11.95 EPS vs. Our/Street of $8.15/$8.21: Big beat for Goldman with most of the upside from trading (up low 30s%), asset & wealth mgmt. (3/4 equity investments), a lot better comp expense and a little better platform solutions. Advisory was below expectations and coming off a strong 4Q last year – nothing to see here with GS’ IB fee backlog up q/q to enter 2025 primed and ready for this better backdrop. While strong performance across the IB and markets is Goldman’s hallmark, note that mgmt. is executing on its plan with 340bps of wallet share gains, growth in financing revenues, growth in durable revenues like a 10% lift in mgmt. fees and 12% in private banking & lending fees, and $72bn in alternatives fundraising in 2024 which is helping offset the $6.9bn reduction in historical principal investments on balance sheet. Though the 2024 ROE was 12.7%, the trajectory and backdrop is pointing higher and mgmt. continues to expect mid-teens ROE though the cycle by breaking even in platform solutions and having a “clear path” to mid-teens returns in AWM (banking and markets are already there). While 2024 marks the 12th of last 14 years not being at or above their mid-teens target, while GS is still in a very cyclical business, GS is also clearly stronger, more durable, more efficient and executing its plan amidst an improving backdrop. To that end, mgmt. noted forward catalysts of constructive economic growth, improving CEO confidence, increasing sponsor activity and an improving regulatory backdrop."

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Shares of Goldman Sachs closed at $571.53 yesterday.