01:14 PM EST, 01/06/2025 (MT Newswires) -- Goldman Sachs Group's ( GS ) business model continues to depend heavily on global banking and markets despite its efforts to enhance revenue durability and grow in higher-multiple segments, UBS Securities said in a note emailed Monday.

UBS said that in the near term, asset and wealth management is unlikely to grow fast enough to become a major driver of overall earnings despite its strong earnings potential and position in alternative investments.

"[AWM] currently contributes less than a third of net revenue, consumes substantial capital and remains too small to offset GBM's influence," UBS said. "Without transformative M&A, AWM's timeline for creating material impact to firm-wide growth remain extended."

For 2025 and 2026, UBS boosted its earnings-per-share estimates for Goldman Sachs ( GS ) by 11% and 14%, respectively, which UBS said reflect higher market making and investment banking fees amid an overall improving deal pipeline, and comp leverage relative to its previous forecast.

UBS downgraded its rating on Goldman Sachs' ( GS ) stock to neutral from buy but raised its price target to $610 from $600.

Shares of Goldman Sachs ( GS ) were up 1.5% in recent Monday trading.

Price: 588.85, Change: +8.72, Percent Change: +1.50