Goldman Sachs Group Inc (GS) earlier this week unveiled long-term targets to support growth of many of its businesses, as it attempts to expand in segments dominated by J.P. Morgan Chase and Bank of America.
Goldman Sachs shares closed higher for the fourth time in the past ten trading sessions in New York on Thursday. The stock went up 1.67% ($4.01) to $244.13, after touching an intraday low at $236.82, or a price level not seen since January 27th ($235.13).
Shares of Goldman Sachs Group Inc have risen 6.18% so far in 2020 compared with a 1.64% gain for the benchmark index, S&P 500 (SPX).
In 2019, Goldman Sachs Group’s stock went up 37.64%, thus, it again outperformed the S&P 500, which registered a 28.88% gain.
At Goldman’s first ever investor day presentation, the bank revealed plans to expand deposit base at its consumer bank to $125 billion over five-year period. Additionally, the bank seeks to expand consumer loans and card balances to over $20 billion over five years.
Goldman Sachs said it aimed to achieve a 60% efficiency ratio over three-year period and it forecast at least 13% return on equity and at least 14% return on tangible equity.
The bank’s presentation also revealed plans to generate $1 billion in revenue through lower interest expenses.
Meanwhile, in a longer-term perspective, the bank said it aimed to achieve “mid-teen returns” of its transaction banking and consumer bank businesses. Goldman’s consumer bank segment includes on-line bank Marcus and its credit card with Apple. This particular business accounts for just over 2% of the bank’s annual revenue.
Analyst stock price forecast and recommendation
According to CNN Money, the 23 analysts, offering 12-month forecasts regarding Goldman Sachs’s stock price, have a median target of $267.00, with a high estimate of $358.00 and a low estimate of $180.00. The median estimate represents a 9.37% upside compared to the closing price of $244.13 on January 30th.
The same media also reported that at least 14 out of 25 surveyed investment analysts had rated Goldman Sachs’s stock as “Buy”, while 9 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.