Bank of America believes Goldman Sachs will thrive under Trump’s deregulation policies, boosting investor confidence and returns.
New York: So, Bank of America is saying that Goldman Sachs is really going to benefit from Trump’s deregulation plans. Analyst Ebrahim Poonawala thinks that less oversight will make investors feel more confident about Goldman’s ability to deliver solid returns. He even called Goldman one of the biggest winners from this shift in policy.
Poonawala mentioned that a more relaxed regulatory environment could help Goldman manage its capital better. This means they can use their resources more effectively to aim for a strong return on equity. While he didn’t mention Trump directly, it’s clear that the election results have people expecting less regulation, which is why stocks have been on the rise.
He’s got a buy rating on Goldman’s stock, with a price target of $675, suggesting there’s still room for growth. This comes after Goldman reported strong earnings recently, which were boosted by good trading results. It seems like the mood among CEOs has shifted positively since the election, according to Goldman’s CEO, David Solomon.
He noted that there’s a lot of excitement in the air for deal-making, thanks to a more favorable regulatory environment. Goldman’s shares have already jumped over 6% this year, adding to last year’s impressive gains. It looks like they’re on a roll!
