Evercore ISI has maintained its positive stance on Goldman Sachs Group Inc (NYSE:GS), reiterating an Outperform rating and a $623.00 price target. The endorsement follows Goldman Sachs' impressive fourth-quarter 2024 earnings, which significantly exceeded expectations. The financial giant reported earnings per share (EPS) of $11.95, surpassing both Evercore ISI's and the Street's estimates of $8.15 and $8.21 respectively.
The firm's management highlighted several forward catalysts that could further bolster Goldman Sachs' performance, including constructive economic growth, rising CEO confidence, increased sponsor activity, and an improving regulatory environment. These factors are expected to contribute to the financial institution's continued strength and resilience in a cyclical industry.
InvestingPro data reveals Goldman Sachs has maintained dividend payments for 26 consecutive years, with a current yield of 2.1% and a 9% dividend growth rate in the past year. For deeper insights into Goldman Sachs' valuation and growth prospects, investors can access comprehensive Pro Research Reports available exclusively on InvestingPro, covering over 1,400 top US stocks.
InvestingPro data reveals Goldman Sachs has maintained dividend payments for 26 consecutive years, with a current yield of 2.1% and a 9% dividend growth rate in the past year. For deeper insights into Goldman Sachs' valuation and growth prospects, investors can access comprehensive Pro Research Reports available exclusively on InvestingPro, covering over 1,400 top US stocks.
Goldman Sachs has demonstrated effective execution of its strategic plan, which includes gaining 340 basis points in wallet share, revenue growth in financing, and an increase in durable revenues such as management fees and private banking & lending fees. The company also raised $72 billion in alternatives fundraising in 2024, which helps to balance the $6.9 billion reduction in historical principal investments on its balance sheet.
The return on equity (ROE) for 2024 stood at 12.7%, and management continues to aim for mid-teens ROE over the cycle by reaching breakeven in platform solutions and targeting mid-teens returns in Asset & Wealth Management (AWM). Goldman Sachs has not consistently met its mid-teens ROE target in 12 of the last 14 years, yet the company's trajectory and the economic backdrop suggest potential for higher returns.
The firm's management highlighted several forward catalysts that could further bolster Goldman Sachs' performance, including constructive economic growth, rising CEO confidence, increased sponsor activity, and an improving regulatory environment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.