Updated Aug 13 at 11:16am ET.
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Goldman Sachs is paying up to 2.25 billion dollars for Neos Investments, a firm that builds actively managed exchange-traded funds (ETFs). Unlike standard funds that simply track a market index, these funds use human managers or specific strategies to try and beat the market.
This deal fits the bank's plan to grow its wealth and asset management arm. By adding more specialized funds, Goldman can collect more steady fees from investors, which helps balance out the unpredictable swings in its trading and investment banking businesses.
Source: Bloomberg Markets and Finance
Police in Brazil have accused two Goldman Sachs representatives of fraud related to a public share offer for Oncoclinicas, a healthcare group. The dispute involves minority shareholders who claim they were treated unfairly during a tender offer, which is a public invitation for shareholders to sell their stock at a specific price. While legal disputes in international markets are common for global banks, this is worth watching for any signs of broader regulatory trouble in the region. At this stage, the matter appears limited to this specific transaction and is unlikely to impact the bank's overall financial health.
Source: Reuters
A Federal Reserve official stated she is prepared to vote for an interest rate hike to combat persistent inflation. While the central bank recently held rates steady, this warning suggests the period of stable or falling rates may be ending sooner than expected.
For a major investment bank, higher rates are a double-edged sword. They can increase the interest income the firm earns on loans, but they often slow down the corporate mergers and stock offerings that drive its high-margin advisory fees.
Source: CNBC
UBS increased its price target to $1,150 per share. This small adjustment reflects a continued positive view of the firm's ability to generate earnings following its recent record-breaking performance in trading and investment banking.
Source: UBS
HSBC upgraded the stock to Hold, signaling that the firm's recent performance has made it a safer bet than previously thought. While not a full recommendation to buy, it suggests the analyst sees less risk of the stock falling from its current levels.
Analysts recently issued a flurry of price target increases following a wave of mid-July updates. Most analysts are split, with 22 buys and 33 neutral or sell ratings, while the average target suggests 15% upside from today's price.
The bank has cleared the analyst bar for eight straight quarters, often by a wide margin. Management is consistently outrunning expectations as both dealmaking and trading stay busy.
| Expectation | |
|---|---|
| EPS | $15.62 |
| Revenue | $17.64B |
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