Opinions
Stephen Weiss, Founder, Short Hills Capital Partners
Goldman Sachs
GS-N
BUY
Oct 14, 2024
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)
They report tomorrow. Earnings are often predictable, though you don't know what he trading and investment activity will be for GS. He expects earnings to be robust and the messaging positive. For GS he also wants to hear about their foray into retail, though this is absorbed in the stock price. BAC's retail operation has been successful, and he wants to hear about credit delinquencies given that consumer debt is at all-time highs. He expects more of the same from these two banks.