Goldman Sachs CEO: Macro Outlook Very Favorable for Risk Assets

Goldman Sachs raised its price target on Plains All American (NASDAQ:PAA) to $17.00 from $16.00, while maintaining a Sell rating. The firm cited mixed quarterly performance, with weaker NGL results offsetting stronger crude oil performance. The company's 2026 EBITDA guidance remains at $2.675 billion to $2.825 billion. Investors should watch how the firm navigates headwinds from recontracting and flat production expectations.

In contrast, Goldman Sachs lowered its price target on Regenxbio (NASDAQ:RGNX) to $12.00 from $14.00, maintaining a Neutral rating. This follows a Complete Response Letter (CRL) from the FDA regarding Regenxbio's RGX-121 program, which raises questions about the data's effectiveness. Analysts remain divided, with some firms maintaining positive ratings despite the setback.

The brokerage also shifted its stance on the European chemicals sector, moving to a more pro-cyclical view. Goldman Sachs upgraded Arkema, Evonik, and Symrise to Buy and raised Lanxess to Neutral. This follows signs of stabilizing industrial activity and capacity closures in Europe, suggesting a turning point for the sector.

Why Did This Happen?

Goldman Sachs cited a mix of performance factors in its decision to raise Plains All American's price target. While NGL results were weaker, the firm noted cost efficiencies and optimization efforts could offset these challenges. EBITDA guidance for 2026 reflects this balance, with the firm projecting $2.993 billion in EBITDA when excluding NGL contributions in the latter quarters.

The downgrade for Regenxbio reflects the CRL received from the FDA for its RGX-121 program. This regulatory setback has created a challenging path forward for the company, with the investment firm anticipating continued pressure on the stock until further data emerges.

Goldman Sachs' pro-cyclical shift in the chemicals sector is based on early signs of improving industrial momentum, including rising U.S. manufacturing activity and infrastructure spending in Germany. The firm's decision reflects its view that diversified chemicals now offer a favorable risk-reward profile.

How Did Markets React?

Shares of Arkema, Evonik, and Symrise rose between 5.3% and 9.4% following the ratings upgrade. This suggests investors responded positively to the firm's revised outlook on the chemicals sector. In contrast, Regenxbio's stock fell approximately 20% after hours following the FDA's CRL.

Plains All American's stock currently trades near its 52-week high, despite the firm's Sell rating. This highlights the divergence between analyst sentiment and market behavior.

What Are Analysts Watching Next?

For Plains All American, Goldman Sachs noted the focus will shift to further efficiency gains and potential M&A activity in 2026. Investors should watch capital allocation decisions as the firm moves toward 150% coverage and balances buybacks with bolt-on acquisitions.

Regenxbio's future will depend on data from its RGX-202 program in Duchenne muscular dystrophy. Goldman Sachs believes this could provide the company with a clearer path forward.

In the chemicals sector, Goldman Sachs expects FY25 results to serve as a clearing event for expectations. The firm noted that multiples have historically led earnings revisions by four to eight months, suggesting investors should monitor upcoming earnings reports closely.

Investors are advised to watch for further developments in regulatory approvals, capital allocation strategies, and macroeconomic indicators in the coming months.