Goldman Sachs (NYSE:GS) CEO David Solomon is under pressure and facing internal backlash due to the departure of several top bankers, recent layoffs, low pay, and underperformance, especially on the profitability front. Further, negative media publicity has been a challenge. Despite these unfavorable developments, Mr. Solomon has the support of the Board and investors, the Financial Times reported.
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The financial services giant’s Board is due to meet next month and will likely discuss the backlash and negative media coverage against Solomon. However, the report highlighted that several members support the current CEO and see the recent developments as “external noise.”
The banking giant’s weak financial performance has exacerbated Solomon’s problems. Notably, Goldman Sachs’ top line fell about 7% in the first six months of 2023, reflecting a decline in mergers and acquisitions transactions. Also, higher net losses in Equity investments and lower Incentive fees remained a drag.
Given the lower revenues, Goldman Sachs’ bottom line plunged about 36% year-over-year in the first half of this year. While Goldman Sachs is going through a difficult patch, let’s look at what the Street recommends for GS stock.
Is Goldman Sachs Stock a Buy or a Sell?
The backlash against the CEO is a negative signal for GS stock. Nonetheless, Goldman Sachs stock has received 12 Buy and six Hold recommendations for a Moderate Buy consensus rating.
Analysts’ average price target of $391.81 implies 20.58% upside potential from current levels.
