Goldman Sachs Targeted at $700, 12% Upside, Bank of America Says

Bank of America has reaffirmed its "buy" rating for Goldman Sachs (GS.US), highlighting the company's ability to adapt to changing environments. The bank emphasized Goldman Sachs' proven "adaptation gene" in a constantly evolving world, setting a target price of $700 for the company. This target price represents a 12% increase from the closing price of $624.17 on June 11.

Analyst Ebrahim Poonawala noted that Goldman Sachs has consistently performed well during challenging periods, such as during the tenure of Paul Volcker at the Federal Reserve and the 2008 financial crisis. These events demonstrated the company's strong combination of scale and flexibility.

Poonawala commented, "Compared to the post-financial crisis era, the macro background (interest rates, geopolitics) has undergone significant changes. Additionally, the strategy of deepening customer relationships through financing has enhanced the resilience of trading income."

He further predicted that Goldman Sachs' trading income would remain robust, a trend already evident in the company's latest quarterly results. Poonawala also mentioned that Goldman Sachs' involvement in private credit since the mid-1990s, along with its extensive risk management history and excellent client selection capabilities, would help mitigate potential credit risks in this area.

Since the beginning of 2025, Goldman Sachs' stock price has surged by nearly 7%. This reaffirmation by Bank of America serves as a vote of confidence in Goldman Sachs' resilience and adaptability, making it a reliable investment option for long-term investors. The target price of $700 reflects the bank's optimism about Goldman Sachs' future performance, based on the company's strong financial position, robust business model, and ability to adapt to changing market dynamics. Goldman Sachs' diverse range of services and global presence further enhance its appeal as an investment option.