Citi Maintains a Neutral Rating on Goldman Sachs (GS), Keeps the PT Unchanged

The Goldman Sachs Group, Inc. (NYSE:GS) is one of the 10 Best and Cheap Stocks to Buy Now. On June 20, Citi analyst Keith Horowitz maintained a Neutral rating on The Goldman Sachs Group, Inc. (NYSE:GS) with a price target of $550. The rating comes as the firm released its Q2 2025 earnings preview note regarding the company.

The Goldman Sachs Group, Inc. (NYSE:GS) released its Q1 2025 earnings results on April 14. The company delivered net revenue of $15.06 billion, reflecting a 6% year-over-year increase. The net income for the quarter came in at $4.74 billion with an annualized ROTE of 18%. Analyst Keith Horowitz acknowledged that the company is managing its main initiatives effectively. He noted Q1 results to be indicative of a clear line of sight towards 15% to 17% ROTCE.

In addition, Horowitz also highlighted his bull case suggesting the ROTCE range to increase further. Despite the bullish scenario, he remains cautious as The Goldman Sachs Group, Inc. (NYSE:GS) is trading above its historic valuations. He believes that to consider the company’s share to be attractively priced investors would have to assume a ROTCE of more than 18% and a significantly reduced risk profile, which Horowitz sees to be too far.

While we acknowledge the potential of GS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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