Goldman Sachs Group: Undervalued Stock with Strong Upside Potential and Buy Rating

Analyst Ebrahim Poonawala from Bank of America Securities reiterated a Buy rating on Goldman Sachs Group (GS – Research Report) and keeping the price target at $700.00.

Ebrahim Poonawala has given his Buy rating due to a combination of factors that present a favorable risk/reward scenario for Goldman Sachs Group. Despite macroeconomic uncertainties, the current valuation of the stock offers a compelling opportunity, trading at relatively low price-to-earnings and tangible book value ratios compared to its forecasted return on equity. This suggests that the stock is undervalued, providing an attractive entry point for investors.
Additionally, multiple factors contribute to potential upside, including anticipated growth in investment banking activities, improved capital flexibility following stress tests, and the secular growth in asset and wealth management revenues. Furthermore, the authorization of a significant share buyback program is expected to provide downside protection and enhance earnings per share, reinforcing the stock’s defensibility. These elements collectively support the Buy rating, with a price objective set at $700.

In another report released today, Barclays also maintained a Buy rating on the stock with a $720.00 price target.