According to a report by Bloomberg, citing a source familiar with the matter, Goldman Sachs Group Inc (GS) intends to enter Japan’s wealth management business.
Goldman Sachs shares closed lower for the fifth time in the past ten trading sessions in New York on Thursday. The stock went down 1.02% ($2.48) to $241.82, after touching an intraday low at $241.20, or a price level not seen since February 3rd ($238.05).
Shares of Goldman Sachs Group Inc have risen 5.17% so far in 2020 compared with a 3.56% 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.
The Wall Street bank, which intends to target high net worth individuals via its asset management division, has started to hire private bankers, the report said.
Goldman also seeks to bolster assets under management to JPY 1 trillion ($9 billion) within the upcoming five to ten years.
An earlier report by the Nikkei newspaper stated that Goldman’s wealth management unit in Japan would target individuals with at least JPY 10 billion in assets.
The move is part of Goldman Chief Executive David Solomon’s initiative to shift the bank’s focus on wealth management and consumer banking and reduce its dependence on revenue from trading operations.
Credit Suisse Group’s Global Wealth Report for 2019 showed Japan was ranked 3rd worldwide in terms of the highest number of millionaires, following the United States and China.
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 $270.00, with a high estimate of $358.00 and a low estimate of $180.00. The median estimate represents an 11.65% upside compared to the closing price of $241.82 on February 6th.
The same media also reported that at least 14 out of 26 surveyed investment analysts had rated Goldman Sachs’s stock as “Buy”, while 10 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.