HSBC downgrades Goldman Sachs to Hold, sees room for disappointment

HSBC analyst Saul Martinez downgraded Goldman Sachs (GS) to Hold from Buy with a price target of $608, up from $569. The firm said it has been mostly constructive on brokers since initiating coverage given attractive revenue outlooks and, for Goldman, self-help opportunities. The analyst is even more positive today on fundamental outlooks, though investors should be wary of arguments that an investment banking supercycle drives shares much higher. The firm added that it still sees Goldman as leverages to an improved IB backdrop, though market expectations are much higher than they have been, leaving room for disappointment.