GS
Still the bank to beat
Goldman Sachs is getting fresh credit for doing what Wall Street loves most: making money when the capital markets are alive and kicking. The note leans bullish on GS thanks to its scale, leadership in deal flow, and a capital formation cycle that’s holding up better than a lot of people expected.
The numbers aren’t exactly sleepy
The article points to second-quarter net revenues of about $20.34 billion, net earnings of $6.63 billion, and a 23.5% return on equity. That’s the kind of combo that makes bankers smile and investors keep one eyebrow raised, because it says Goldman’s Global Banking & Markets machine is still humming.
Why investors should care
The valuation pitch is also part of the story. The piece says fair value averages around $1,065.49 a share, which implies the stock is only modestly undervalued by about 2.45%. In other words: not a screaming bargain, but not some overcooked momentum trade either.
- Strong deal flow can keep fee income sturdy
- Capital markets strength helps offset the boring parts of banking
- A healthy ROE suggests Goldman is still earning its keep
Big picture: Goldman doesn’t need a fairy tale to work — it just needs markets to stay active, and right now that’s enough to keep the bull case alive.