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Research Alert: CFRA Reiterates Strong Buy Opinion On Shares Of The Goldman Sachs Group, Inc.
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Research Alert: CFRA Reiterates Strong Buy Opinion On Shares Of The Goldman Sachs Group, Inc.
Jun 25, 2025 12:55 PM

03:30 PM EDT, 06/25/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our target by $55 to $740 using a wider risk premium and a forward P/E of 14.8x our 2026 earnings estimate, which is in line with the five-year historical average of 14.9x and just above the peer average multiple. We believe GS is likely to gain wallet share and is best positioned for a strong second half in 2025, as geopolitical events may wane and investor confidence remains high. With outsized earnings of $14.12 in Q1 2025 coming from significant gains in equity trading, our 2025 EPS estimate is $46.00 and 2026's is $50.00, both in line with the consensus. The latter is a conservative estimate, taking into account trade tariff uncertainties and worries about tepid demand for investment banking, as we attempt to move from a risk-off environment, which we view as a worst-case scenario. We think a higher P/E multiple above 15.0x would need a major shift to a risk-on market, higher CEO confidence to boost equity underwriting and M&A transactions, and higher earnings delivery from the bank.

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