Stockchase Opinions

Marc-Andre Gaudreau Goldman Sachs GS-N PAST TOP PICK Sep 19, 2012

(A Top Pick Sept 16/11. Up 11.79%.) From a regulatory standpoint, brokers cannot take on as much risk as before. From a debt standpoint this is good. He is taking profit right now but longer-term he is still comfortable with the name

$119.020

Stock price when the opinion was issued

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BUY

Banks earnings happen next Wednesday: JPM, Goldman, Wells Fargo and Citi. He expects good reports from all. The expected increase in M&A will benefit all. These stocks are off their highs at very low PEs. He's been buying them.

WAIT

Banks in both the US and Canada look pretty good, though the US market is stronger. GS's chart has been in a strong uptrend since late 2023, though recent weakness sees it falling back to that trendline. Hope that it bounces off that and buy. You don't want to see the stock fall further down. See if it holds before buying.

BUY

This week, they delivered a giant revenue beat as earnings more than doubled YOY. Global banking saw 33% revenue growth, equities trading up 32%, investment banking fees 24%, asset/wealth management 8% and platform solutions 16%. Operating expenses were -3% YOY, in-line, efficiency ratio was 59.6% and bought back $2 billion in shares.

BUY ON WEAKNESS
GS vs. JPM

Likes them both, as well as others in the sector. Don't look at the chart and not buy because it's gone up so much and you've "missed" the price move. Instead, look at the fundamentals -- have earnings, cashflow, revenue growth kept up with the price? Or, look to how it's trading against historical valuations.

He added not so long ago. Excellent opportunity, mainly on capital markets side. Good economy, reduced regulation. Unlike other areas of the market, valuations in financials are not extended, so there's opportunity.

BUY

Sells at 13x PE, and is doing very well. A solid buy.

STRONG BUY

Likes US financials. Likes its ability to really take advantage of increased M&A activity. See his Top Picks.

BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

At 13X earnings, considering earnings, capital markets outlook and interest rate forecasts, we think it still looks good.
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BUY ON WEAKNESS

Likes it. Financials should be one of the leaders coming out of the current environment, as they were before the recent volatility. Down ~22% from recent highs last month on recession concerns. 200-day MA seems to be support where you can buy. As Buffett says, "Be greedy when others are fearful."

One of the leaders in investment banking and wealth management. Will benefit from deregulation and potential increase of M&A activity.

COMMENT
Downgraded today

The analyst who downgraded GS is saying nothing new, including a delay in the M&A cycle. The IPO market will likely emerge in second-half 2025. Also consider is defaults will rise? Lending growth slow or reverse? The overall economy slow down?

BUY

The US about to see a wave of mergers and IPOs and GS will benefit from that.