Opinions
John O'Connell, CFA
Goldman Sachs
GS-N
TOP PICK
Jul 25, 2017
Stock price when the opinion was issued
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At 13X earnings, considering earnings, capital markets outlook and interest rate forecasts, we think it still looks good.
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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.
Of the big banks, they are the most levered to investment banking, including IPOs. He bought it expecting an uptick in IPOs under Trump, but his tariffs have temporarily derailed that. The IPO revival should happen if tariffs don't return. This pulled back hard since mid-February because of those tariffs, down 35%.
Is perfectly positioned for the tailwinds under the Trump presidency. After April's tariffs, corporate boards have been sitting and waiting, reluctant to do deals, but a strong capital market will eventually happen. Pays a good dividend and are very well-capitalized.
(Analysts’ price target is $596.61)
Just reported record earnings and profits. They have a strong capital management team. We have gone through 8 years of a financial mania, conglomeration and low interest rates. At some point that is going to reverse itself and this leading investment bank is going to help the companies get themselves out of trouble that they have put themselves in. Dividend yield of 1.4%. (Analysts’ price target is $241.50.)