Goldman Sachs Earnings Hit By Lending and Debt Investments


Goldman Sachs upgraded at BMO, with price target to $276 from $205.

BMO Capital analyst James Fotheringham turned bullish, citing a strong capital position, relatively small loan book and limited reliance on spread income.

Fotheringham raised his rating to outperform, after being at market perform for at least the past three years, while raising his stock price target by 35%, to $276 from $205.

He said Goldman is better positioned than other moneycenter banks to weather the environment of continued low interest rates and declining credit metrics brought on by the effects of the COVID-19 pandemic on the economy. “From a credit perspective, we expect [Goldman] can withstand the $8 billion (pre-tax) of expected cumulative credit losses (both on and off balance sheet 1Q20A-1Q22E),” Fotherginham wrote in a note to clients.