Goldman Sachs price target raised to $686 from $570 at Keefe Bruyette

Keefe Bruyette analyst David Konrad raised the firm’s price target on Goldman Sachs (GS) to $686 from $570 and keeps an Outperform rating on the shares. The U.S. bank stocks have had a strong run following better than expected earnings and, more importantly, the election results, the analyst tells investors in a research note. The firm believes there are “potential tangible outcomes” post-election to drive higher earnings, including investment banking, trading, market sensitive revenues such as custody and asset management. Moreover, the proposed Basel III Endgame requirements are likely to continue to be watered down, adds Keefe. As such, it thinks the group will experience a re-rating given expectations for positive estimate revisions, expanding returns on tangible common equity and greater regulatory capital relief than other banks sectors.