Investment and financial services firm Goldman Sachs (NYSE:GS) is reportedly retracing its steps and looking for an exit from consumer lending services, The Wall Street Journal reported. With the company’s earnings report scheduled for Tuesday, investors await the call on “what’s next” for the company.
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In particular, key executives within the company want it to pull out completely from the consumer finance business and shift back to its Street-focused business. Per the report, the firm’s April partnership with Apple has been nothing but trouble, with some executives asking why the company ever made that decision.
Should the company decide to pull out, it will end its support for Apple’s (NASDAQ:AAPL) credit card, as well as its credit card business for General Motors (NYSE:GM). Goldman Sachs is reportedly in talks with American Express (NYSE:AXP) to take over the Apple Card and other ventures.
However, making that decision wouldn’t be easy as the company is weighing the financial implications. Already, Goldman Sachs took a loss when it sold lending platform GreenSky for a reported $500M. The firm acquired GreenSky in 2022 for $2.2B.
One of the options Goldman Sachs is considering is shifting more of the partnership over to Apple. However, executives countered that the option isn’t being considered, reiterating their desire to exit the segment completely.
What is the Price Target for GS?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GS stock based on 14 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average GS price target of $393.50 per share implies 24.72% upside potential.
