JPMorgan downgraded Goldman Sachs (GS) to Neutral from Overweight with a price target of $750, up from $625. The firm has been positive on global investment banks for a while now, noting such banks have seen material EPS upgrades and multiple expansion. While JPMorgan is willing to pay a premium for Tier 1 players like Goldman Sachs and Morgan Stanley (MS), the current valuation of 14x for Goldman and 15.2x for Morgan Stanley on its 2027 forecasts looks too high a premium of roughly 80% versus European IBs, the analyst tells investors in a research note. The firm continues with its preference for Goldman Sachs and Morgan Stanley in the U.S.
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