Analyst Says Goldman Sachs CEO David Solomon Faces Key Challenge In Managing Earnings Volatility
01/07/2026 03:54 PM • BofA Securities analyst Ebrahim Poonawala raised Goldman Sachs' price target to $1,050 from $900 with a Buy rating, but notes CEO David Solomon's main challenge is managing earnings volatility. The analyst expects a 20% rebound in investment banking revenue for FY26 and normalized performance by FY27, with ROTCE approaching 19% and an efficiency ratio around 60%. Goldman's earnings have historically swung significantly, with a 56% EPS drop from 2021 to 2023, driven by capital markets business volatility.
GS - Analyst raised price target significantly (from $900 to $1,050), maintained Buy rating, and expects strong FY26 rebound with 20% investment banking revenue growth and normalized performance by FY27. However, sentiment is tempered by acknowledged concerns about earnings volatility inherent in the capital markets business.
Investing.com • Itai Smidt