Goldman Sachs upgraded to Buy at UBS on less exposure to consumer deposits
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- UBS analyst Brennan Hawken upgraded Goldman Sachs Group (NYSE:GS) to Buy from Neutral as Wall Street bank — which isn't as exposed to consumer deposits and commercial banking as its peers — is poised to perform well in an environment of elevated market volatility.
- "The firm also has an opportunity to accelerate the growth of their A&WM (Asset & Wealth Management) platform and their transactional banking business through attractively priced M&A, especially if stress in the banking system presents further inorganic opportunities," Hawken wrote in a note to clients.
- He also pointed out that Goldman's (GS) stock valuation is attractive relative to its history, trading at 1.1x price/tangible book value, well below its average of ~1.3x over the last two years.
- Goldman (GS) stock gained 0.5% in Wednesday premarket trading.
- The Buy rating aligns with the SA Quant rating, as well as the average SA Analyst rating and the average Wall Street rating.
- See why Investing Group leader JR Research says "now's your chance" to add to your Goldman position.