12:34 PM EST, 01/16/2025 (MT Newswires) -- Goldman Sachs' ( GS ) Q4 results demonstrate the bank's operational leverage and efficiency gains as it showed the ability to exceed revenue expectations without proportional increases in expenses, Oppenheimer said in a note on Thursday.

The lender's Q4 earnings of $11.95 per share exceeded consensus estimates of $8.21 driven by trading revenues, which contributed $1.8 billion more than projected to total revenue of $13.9 billion, Oppenheimer analysts said.

Equity underwriting was responsible for a 24% growth in investment banking revenue while merger and acquisition activity declined in line with broader industry trends, according to the note.

The firm expects deal activity to rebound by 2025-2026 and Goldman Sachs ( GS ) is well-positioned to capitalize on the anticipated recovery with an "enormous pent-up demand as M&A volumes in 2024 were the lowest since 2014."

The brokerage raised its price target to $687 from $639 while reiterating an outperform rating on the stock.

Shares were 1.1% higher in recent trading.

Price: 612.50, Change: +6.58, Percent Change: +1.09