In a report released yesterday, Betsy Graseck from Morgan Stanley maintained a Hold rating on Goldman Sachs Group, with a price target of $828.00.
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Betsy Graseck’s rating is based on a combination of factors related to Goldman Sachs’ recent acquisition of Innovator Capital. The acquisition is strategically aligned with Goldman’s goal to enhance its durable revenue streams and expand its wealth management capabilities, particularly in the growing market of defined outcome ETFs. These ETFs have been experiencing significant growth, and the acquisition positions Goldman Sachs as a top provider in this space.
Financially, the acquisition adds $28 billion in Assets Under Supervision, contributing a modest 0.8% increase to Goldman’s total AUS. The expected annual incremental revenue from this acquisition is estimated at $221 million, which is a 1.3% addition to their Asset & Wealth Management revenues. However, the overall impact on Goldman’s total revenues and pre-tax income is relatively small, which supports the Hold rating as the acquisition, while beneficial, does not drastically alter the company’s financial outlook.
In another report released on November 19, Oppenheimer also maintained a Hold rating on the stock with a $0.00 price target.