HSBC Keeps Hold on Goldman Sachs (GS) while Raising 2025-2026 EPS Estimates

The Goldman Sachs Group, Inc. (NYSE:GS) is included among the 15 Dividend Growth Stocks with the Highest Growth Rates.

On January 7, HSBC slightly lowered its price target on The Goldman Sachs Group, Inc. (NYSE:GS) to $604 from $608, while keeping its Hold rating. The analyst noted that bank stocks have recently pulled back, which is creating some selective chances to add exposure. HSBC also increased its adjusted EPS estimates for 2025 and 2026 across the group by around 1% to 7%, reflecting expectations for stronger net interest income, improved investment banking fees, and higher share repurchase activity.

Goldman then reported Q4 2026 earnings on January 15 and delivered a result that beat Wall Street expectations. The quarter was powered by a pickup in dealmaking and solid trading performance, and management sounded confident about investment banking momentum going into the year ahead.

The Goldman Sachs Group, Inc. (NYSE:GS) pointed to a mix of supportive factors driving companies back into deal mode, including a friendlier regulatory tone under US President Donald Trump, lower interest rates, and a large amount of cash still sitting on corporate balance sheets. CEO David Solomon told analysts the current setup looks “incredibly constructive” for M&A and capital markets in 2026.

Investment banking fees climbed 25% from a year earlier to $2.58 billion. That was a strong jump, though it still landed slightly below the $2.66 billion analysts had expected. On the trading side, Goldman’s equity desk benefited from higher volatility and a broader market rally, as investors repositioned around the Federal Reserve’s interest rate outlook and the continued buzz around AI-related companies. Equity revenue rose to a record $4.31 billion, up from $3.45 billion a year ago. Fixed income, currencies, and commodities trading also improved, with revenue rising 12.5% to $3.11 billion.

The Goldman Sachs Group, Inc. (NYSE:GS) is a global financial institution that offers a wide range of services to corporations, governments, financial institutions, and individual clients.

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