Keefe downgrades Goldman Sachs on ‘elevated’ valuation

Keefe Bruyette downgraded Goldman Sachs (GS) to Market Perform from Outperform with a price target of $660, down from $690. The firm cites the stock’s “elevated valuation” and a more balanced risk/reward for the downgrade. Goldman still has catalysts, including a strong trading environment, improving investment banking backdrop, restructuring its consumer business and improving margins in asset management, but the shares are at “peak valuation: with potential headwinds against strong market expectations owing to market uncertainty surrounding tariffs, inflation, interest rates and government policies, the analyst tells investors in a research note. Keefe believes these uncertainties have led to a disappointing start of the year in investment banking.