CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We think GS shares are near our view of fair value, or our $388 target (up from $340), on forward P/E multiple expansion to 11.3x, above the three-year historic average at 10.0x. We lift our 2024 EPS by $0.20 to $34.40 and set 2025 at $38.70, with revenue forecast at $50.5B/$52.3B. GS posted Q4 2023 EPS of $5.48, a $1.21 earnings beat. In Global Banking Marketing (+7% Y/Y, 56% of total revenue), FICC trading was -24% and equity trading +26%, with lower trading activity. Investment Banking revenue was -12% Y/Y, with debt underwriting +40% and equity underwriting +38%, while M&A advisory was -29%. In 2024, we believe GS will pursue acquisitions to gain scale in Asset and Wealth Management. The segment posted revenue +23% Y/Y in Q4 2023 due to higher public equities on average assets under supervision at $2.8T. There was a one-time gain of $349M due to the sale of a business. Platform Solutions realized revenue +12% Y/Y, with higher credit card balances in Consumer platforms, but GS will exit the unit.