Shares in investment bank Goldman Sachs (GS) were higher today as it was hailed as the big winner of the rebound in M&A this year.
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Higher Share
According to new data from LSEG, Goldman Sachs has advised on 34%, by value, of the $3.8 trillion of global mergers announced this year. That is up from 28% last year and is set to be Goldman’s highest share since 2015.
Its nearest rivals were JPMorgan (JPM), followed by Morgan Stanley (MS) and Bank of America (BAC).
Goldman’s full-year figures will be helped by being the sole financial adviser for Electronic Arts (EA) in its recent $55 billion take-private deal. GS is set to earn a $110 million fee from its work on the deal. It was also an adviser on the $48.7 billion Kimberly-Clark (KMB) and Kenvue (KVUE) deal.
In its recent Q3 results GS achieved a significant milestone in its mergers and acquisitions advisory business, advising on over $1 trillion in announced M&A volumes for the year to date.
M&A Bounceback
The M&A market had been subdued in the early part of 2025 given general business uncertainty over President Trump’s tariff strategy, economic confidence and the direction of interest rates. However, the barriers have broken as trade deals ease tariff fears and interest rates appear to be continuing on a downward path.
Big business has also taken heed of what has been described as Trump’s ‘laissez-faire’ attitude towards big mergers in critical sectors.
That means that other big banks have been in the big money. The recent $85 billion takeover of Norfolk Southern (NSC) by rival Union Pacific (UNP) is said to have earned Bank of America a $130 million fee.
This is helping share prices in the sector – see below – and there could be more big-earning days to come.
Goldman’s global head of M&A told the Financial Times: “CEOs are recognising that if something makes sense strategically then they should consider it.”
Is GS a Good Stock to Buy Now?
On TipRanks, GS has a Moderate Buy consensus based on 6 Buy and 7 Hold ratings. Its highest price target is $890. GS stock’s consensus price target is $829.54, implying a 4.88% upside.
