Bank of America Corp (NYSE:BAC) analysts have raised their price target on Goldman Sachs Group Inc (NYSE:GS, XETRA:GOS) stock following investor meetings with company executives, citing accelerating revenue momentum, a supportive regulatory backdrop and strengthening competitive positioning.
Bank of America has a ‘Buy’ rating on Goldman Sachs, which traded hands at $865 on Monday afternoon, up 51% so far in 2025.
The firm wrote in a note that its discussions in the Middle East with CFO Denis Coleman and Head of Investor Relations Jehan Ilahi reinforced the view that the bank is benefiting from strong revenue drivers, including dealmaking, wealth management and private credit, as well as internal productivity efforts tied to OneGS 3.0 and new AI initiatives.
“We see potential for $60+ in 2026 EPS driven by M&A super cycle, AI debt financing, resilient trading and capital deployment,” they wrote.
They wrote that this potential is supported by robust deal activity, lower interest rates, a favorable regulatory environment, and renewed corporate and sponsor-driven transactions.
Bank of America also noted that the S&P 500’s total market capitalization has grown by roughly $20 trillion since 2021, creating the conditions for higher revenue generation.
Goldman Sachs is now moving from capital optimization to active deployment, the analysts noted. “After spending the better part of the last decade on capital optimization, management is in capital deployment mode,” they wrote.
With a CET1 ratio of 14.4% versus a 10.9% regulatory minimum, the firm has the flexibility to make strategic investments, including the roughly $2 billion acquisition of Innovator Capital, the partnership with T. Rowe Price on target-date funds, and the purchase of Industry Ventures.
The analysts wrote that the stock’s strong performance this year reflects improving fundamentals, including a positive earnings-revision cycle, a rebound in M&A and IPO activity, AI-enabled financing, resilient trading, and meaningful capital optionality.
They added that the price target increase is based on higher valuation multiples, citing an “improved growth/ROE outlook,” and said they expect Goldman Sachs to continue outperforming.