Goldman Sachs (GS) Stock Forecast & Price Target

Goldman Sachs Group is experiencing a positive trend in its revenue streams, with year-to-date revenues showing a 4.5% increase and projections indicating trading revenues could reach approximately $138 billion in 2024. The firm's asset and wealth management segment has demonstrated robust performance, evidenced by a 15% rise in management fees to $2.8 billion, and a significant pretax margin improvement from 10% in 2023 to 28% in 2024. Additionally, investment banking revenues have surged by 20% year-over-year, bolstered by a notable 45% increase in debt capital markets activity, signaling a potential return to more normalized revenue levels in the coming years.

The analysis indicates that Goldman Sachs Group is experiencing a challenging financial backdrop, particularly reflecting on a 2% quarterly decline in non-compensation expenses and weaker Platform Solutions revenue linked to losses from the GM credit card program. Pressures on net interest income are anticipated to negatively affect earnings per share (EPS) estimates amid ongoing difficulties in the investment banking sector, with core return on tangible common equity (ROTCE) projected at approximately 11.7% for the quarter—considered deficient in light of current market conditions. Additionally, the risks of increased credit costs, diminished loan demand, and margin pressures may intensify due to an anticipated decline in economic activity, further impacting investor sentiment and overall company valuation.