These 2 Analysts Have Revised Estimates After Goldman Sachs Earnings Call: Here's Their New Outlook

Goldman Sachs Group Inc GS reported a decline in both sales and profits for the second quarter, but both figures surpassed expectations.

Morgan Stanley On Goldman Sachs: Analyst Betsy Graseck maintained an Equal-Weight rating on the stock, while keeping the price target unchanged at $354.

“Goldman missed our 2Q expense estimate by over $1B,” Graseck said in the note. To increase efficiencies, the bank plans to “slow the velocity of hiring in the second half of this year, decrease replacement of attrition, and may reinstate their annual employee performance review process,” she added.

Goldman raised its reserves by $520 million, reflecting strong loan growth, the analyst mentioned. She raised the earnings estimates for 2022 and 2023 by 2% to $34.53 per share and by 3% to $40.40 per share, respectively, “primarily on higher asset management revenues and higher markets revenues, partially offset by higher expenses.”

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RBC Capital Markets On Goldman Sachs: Analyst Gerard Cassidy reiterated a Sector Perform rating, while maintaining the price target at $370.

“Performance relative to our estimate was primarily driven by stronger-than-expected performance in asset management, investment banking, and global markets, partially offset by higher than expected expenses and equity investment losses,” Cassidy said in a note.

The analyst reduced the earnings estimate for 2022 from $30.46 per share to $33.25 per share, while raising the estimate for 2023 from $36.50 to $38.00.

GS Price Action: Shares of Goldman Sachs had risen by 4.70% to $315.75 at the time of publication Tuesday, according to Benzinga Pro.