Morgan Stanley published a report that lowered Goldman Sachs' earnings estimate for the third quarter of this year by 11.3% to 13.76 US dollars, mainly reflecting an increase in non-remuneration expenses, a decline in asset and wealth management investment income, a slight reduction in investment banking expenses, and an increase in provisions, which were partially offset by rising stock and fixed income, foreign exchange and commodity revenue and lower tax rates. Goldman Sachs management's comments at the conference included: the stock business was relatively strong; the FICC business was relatively weak; the asset and wealth management investment business was significantly sluggish compared to the second quarter; unpaid expenses increased by 500 million US dollars or more from quarter to quarter; and provisions increased slightly from year to year. The bank also lowered its FY2026 earnings forecast of $2.46 or 3.5% to $67.75, mainly driven by the revised third-quarter forecast; it also slightly lowered its 2027 earnings forecast of $0.33 or 0.4% to $73.56. Damo maintains Goldman Sachs's “in sync with the market” rating. The target price is 1,145 US dollars, based on a forecast price-earnings ratio of 15.5 times in 2027, which is higher than the industry average.

Morgan Stanley published a report that lowered Goldman Sachs' earnings estimate for the third quarter of this year by 11.3% to 13.76 US dollars, mainly reflecting an increase in non-remuneration expenses, a decline in asset and wealth management investment income, a slight reduction in investment banking expenses, and an increase in provisions, which were partially offset by rising stock and fixed income, foreign exchange and commodity revenue and lower tax rates. Goldman Sachs management's comments at the conference included: the stock business was relatively strong; the FICC business was relatively weak; the asset and wealth management investment business was significantly sluggish compared to the second quarter; unpaid expenses increased by 500 million US dollars or more from quarter to quarter; and provisions increased slightly from year to year. The bank also lowered its FY2026 earnings forecast of $2.46 or 3.5% to $67.75, mainly driven by the revised third-quarter forecast; it also slightly lowered its 2027 earnings forecast of $0.33 or 0.4% to $73.56. Damo maintains Goldman Sachs's “in sync with the market” rating. The target price is 1,145 US dollars, based on a forecast price-earnings ratio of 15.5 times in 2027, which is higher than the industry average.