Goldman Sachs re-adjusts capital markets stock ratings as investor enthusiasm rises

  • Investing.com
  • Stock Market News
Goldman Sachs re-adjusts capital markets stock ratings as investor enthusiasm rises
Credit: © Reuters.

Goldman Sachs adjusted ratings for various capital markets stocks in a note this week. The investment bank downgraded Blackstone (NYSE: BX ), Charles Schwab (NYSE: SCHW ), and Raymond James Financial (NYSE: RJF ) to Neutral from Buy and CME Group (NASDAQ: CME ) to Sell from Neutral. It also upgraded shares of State Street (NYSE: STT ) and Ameriprise Financial (NYSE: AMP ) to Buy from Neutral.

Analysts said the year-end rally in risk assets and expectations for lower interest rates have propelled investors' enthusiasm for capital markets stocks.

"We expect capital velocity and transaction activity to improve in 2024, from 2023's depressed levels, but to remain below historical averages as the cumulative effect of a higher cost of capital is still working its way through the ecosystem," the analysts wrote.

"That said, the perceived "rates winners" vs. "rates losers" stock moves have left valuation multiples for many stocks at or above normalized levels and broadly out of sync with our updated growth expectations," they added.

Goldman Sachs expects this to result in broader dispersion in share price performance in 2024, driving a meaningful realignment in the firm's ratings.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100