Goldman boss David Solomon warns investors of a stock market drawdown - CNBC

Goldman boss David Solomon warns investors of a stock market drawdown - CNBC

Goldman Sachs has upgraded ABN Amro (AS:ABN) (OTC:ABNRY) to a "Buy" rating from "Sell," raising its price target to EUR32.50 from EUR24.70, citing expectations for improved returns over the next three years .

The investment bank forecasts ABN Amro’s net interest income (NII) to expand from €6.4 billion this year to €7.4 billion in 2028, driven by hedging tailwinds as the yield curve has steepened year-to-date. Goldman’s NII forecasts are 4-6% above consensus across 2026-28.

Goldman Sachs expects the third quarter to mark the trough in replicating portfolio income, with sequential improvement anticipated from the first half of 2026. The firm notes that a 25 basis point savings rate cut would equate to 8% of 2026 net profit, based on its estimates.

The upgrade comes ahead of ABN Amro’s Investor Day scheduled for November 25, where Goldman expects new management to focus on a path to higher returns. The firm conducted a comparison with ING, identifying areas where improved risk-weighted asset management and greater cost efficiency could narrow the 350 basis point return on tangible equity gap.

Goldman Sachs projects ABN Amro will post a 9% return on tangible equity this year, increasing to approximately 11.5% in 2027 and 12.5% in 2028.