BofA Global Research raises Goldman Sachs price objective to $782 from $775

BofA Global Research raises Goldman Sachs price objective to $782 from $775

BofA Global Research has revised its price objective for Goldman Sachs (GS) to $782, up from the previous target of $775. The upgrade reflects the investment bank's strong performance in the second quarter of 2025, as well as positive market expectations leading up to its earnings report scheduled for July 16.

Goldman Sachs is expected to report earnings per share (EPS) of $9.65 for the second quarter, representing a 12% year-over-year (YoY) increase [1]. Revenue projections stand at $13.51 billion, indicating a 6% YoY growth [1]. The stock has surged 26% year-to-date (YTD) due to robust trading results, higher capital returns, and an uptick in deals and initial public offerings (IPOs) [3]. Despite downward revisions in EPS estimates over the past 30 days, the consensus now stands at $9.43 per share, suggesting a 9.4% YoY increase [1].

Key factors shaping GS’s Q2 results include market-making revenues, investment banking (IB) fees, net interest income (NII), and expenses. Market volatility and client activities are expected to drive market-making revenues, while strong deal-making activities and leadership in the IB space are likely to boost IB revenues [1]. NII is projected to increase by 28.3% YoY, driven by solid lending demand and stable funding costs [1]. Expenses are anticipated to rise due to investments in technology and market development, as well as higher transaction-based expenses [1].

The stock has outperformed its peers, JPMorgan (JPM) and Morgan Stanley (MS), with JPM rising 19.8% and MS rallying 22.7% in the second quarter of 2025 [1]. Goldman Sachs is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 14.74X, slightly above the industry average of 14.66X [1]. Its peers JPMorgan and Morgan Stanley trade at forward 12-month P/E ratios of 14.91X and 15.94X, respectively [1].

The TipRanks AI analyst rates Goldman Sachs as Neutral with a price target of $773, suggesting an 8.37% upside [3]. Options traders anticipate a 3.83% move in either direction in response to Q2 results [3].

BofA Global Research's upgrade to $782 reflects the firm's confidence in Goldman Sachs' ability to continue delivering strong financial performance and growth prospects. Investors should monitor the upcoming earnings report for clarity on the company's performance and potential entry points.

References:
[1] https://www.theglobeandmail.com/investing/markets/stocks/JPM-N/pressreleases/33389273/goldman-s-q2-earnings-on-the-deck-here-s-how-to-play-the-stock-now/
[2] https://www.benzinga.com/analyst-stock-ratings/price-target/25/07/46343357/goldman-sachs-earnings-are-imminent-these-most-accurate-analysts-revise-forecasts-ahead-of-earnings-call
[3] https://finance.yahoo.com/news/stay-ahead-game-goldman-gs-131502712.html