Shares of Goldman Sachs Group Inc. GS, +1.28% rallied 1.5% in midday trading Monday, enough to pace the Dow Jones Industrial Average’s DJIA, +0.29% gainers, after JMP analyst Devin Ryan turned bullish ahead of earnings, citing Goldman’s push into consumer and cash management businesses. The stock was providing the biggest boost to the Dow, as the $3.63 price gain was adding 25 points to the Dow, which was up 82 points. Ryan raised his rating to market outperform from market perform, and established a $290 stock price target, which is 18% above current levels. “We believe Goldman Sachs is in the early stages of one of the most meaningful transformations within financial services, and we are bullish on its ability to execute from here,” Ryan wrote in a note to clients. He said although the stock has already been outperforming–it rose 37.6% in 2019 while the SPDR Financial Select Sector ETF XLF, +0.68% climbed 29.2% and the Dow rose 22.3%–he still feels the market is “underappreciating, or even dismissing the evolution and growth shift occurring at the firm.” Goldman is scheduled to report fourth-quarter earnings on Wednesday.
Goldman's stock leads the Dow's gainers after JMP turns bullish, citing firm's 'evolution'
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