11:39 AM EDT, 07/16/2024 (MT Newswires) -- Goldman Sachs' ( GS ) is poised to benefit from a recovery in capital markets after Q2 earnings per share topped the market consensus, Oppenheimer said Tuesday in a report.

Q2 "results are generally reflective of operating fundamentals" with EPS of $8.62, topping the consensus of $8.35 and trailing Oppenheimer estimate of $9.01, according to the report.

"There should still be a pretty good cyclical rebound in investment banking revenues in front of us, and this has the potential to boost trading revenues as well," Oppenheimer said.

Goldman is successfully growing its alternative investments business, raising $36 billion in H1 against a $50 billion annual goal, Oppenheimer said.

Oppenheimer raised the price target on Goldman stock to $559 from $504 and reiterated its outperform rating.

Goldman "remains a top pick," and "we continue to think there

is upside to our estimates if the investment banking cycle really hits its stride," Oppenheimer said.

Goldman shares rose 2% in recent trading Tuesday. The company reported Q2 results on Monday, and several other analysts boosted their price targets on the stock.

Price: 502.21, Change: +9.98, Percent Change: +2.03