Goldman Sachs Group Inc. /zigman2/quotes/209237603/composite GS -1.57% rose 1.6% after Bank of America analyst Ebrahim H. Poonawala upgraded the company to buy from neutral on his view that the bank offers a relatively better value than its peers in a looming economic downturn. Poonawala raised his price target on Goldman to $380 a share from $360 a share. Goldman's revenue could also benefit from geopolitical volatility and monetary policy which may drive elevated trading activity. However, Poonawala cut his Goldman Sachs earnings estimate for 2022 to $33.17 a share from $38.73 a share and his 2023 earnings estimate to $36.83 a share from $38.50 a share. "Our ratings change (first upgrade of 2022) does not indicate an improved outlook for bank stocks," Poonawala said. "To the contrary, we see the stock as well-positioned to outperform in what is likely to be a worsening economic backdrop that could weigh more materially on the EPS outlooks for its balance sheet lending heavy peers."
Add to watchlist
