Analyst: Goldman Sachs could be a $420 stock

on Feb 25, 2022
  • Mike Mayo reiterated Goldman Sachs a "buy" with a price target of $420.
  • Amy Raskin and Steve Weiss agreed with the bullish call on CNBC.
  • Shares of the investment bank are down more than 10% for the year.

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Shares of the Goldman Sachs Group Inc (NYSE: GS) are up close to 3.0% on Friday after Mike Mayo said the stock could climb to $420. The Wells Fargo analyst reiterated his “buy” rating on GS this morning.

Amy Raskin reacts to the bullish call

On CNBC’s “Halftime Report”, Amy Raskin said she was still underweight “financials” but agreed with Mayo’s bullish call on Goldman Sachs. The chief investment officer at Chevy Chase Trust added:

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We like Goldman Sachs within financials. We are moving some of our position in JPMorgan to Goldman Sachs as we believe it is the better positioned company here. Still has the largest share in key markets. Trading at less than ten times earnings with good management team.

Earlier this week, Goldman Sachs’s CEO David Solomon said the investment bank was committed to “consistency of returns” for its shareholders. He expressed confidence that the strategy was working and will eventually reflect in the stock price.

Steve Weiss agrees Goldman Sachs is a cheap stock

Last month, Goldman Sachs blamed higher costs and a slowdown in trading as Q4 earnings came in shy of Wall Street estimates. Still, Short Hill’s Steve Weiss agreed with Mayo’s positive view and said:

I agree with Mike. Goldman is just way too cheap. The way that David Solomon is reengineering the business, going more to fee-paying businesses will be great for the investment bank because they have got that gold plated name plate that will help drive business.

Also on Friday, Goldman Sachs confirmed the U.S. Securities and Exchange Commission (SEC) had launched a probe into its record-keeping practices. The bank is fully cooperating with the regulator.