Goldman Sachs shifts focus to investment banking, optimistic about potential recovery in high-margin businesses.

From Zacks Investment Research: 2025-06-05 15:18:00

Goldman Sachs (GS) maintains its lead in M&A deals in 1Q25 despite challenges in the sector. Exiting consumer finance, GS focuses on high-margin IB and trading businesses, with a strong advisory backlog indicating potential recovery. While IB revenues fell 8% y/y, market volatility delays the expected rebound. Competitors like JPMorgan (JPM) and Morgan Stanley (MS) also navigate market uncertainties. GS’s stock has gained 5.7% YTD, trading at a forward P/E ratio of 12.78X. Estimates show growth potential, with a Zacks Rank #3 (Hold). The firm remains strategic in positioning for future opportunities in the IB sector.



Read more at Zacks Investment Research: Goldman Refocuses on Investment Banking: Will It Pivot to Profit? – June 5, 2025