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GS: Future Returns Will Reflect Improved Profitability And Balanced Expansion Plans

Global Wealth Growth And Digital Banking Will Unlock Value

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GS
AnalystHighTarget
Not Invested
Published 13 Jul 2025

Update shared on 13 Dec 2025

Fair value Increased 10%
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AnalystHighTarget's Fair Value
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1Y
56.5%
7D
0.4%

Analysts have raised their price target for Goldman Sachs Group from $815 to $900 per share, reflecting expectations for slightly slower revenue growth, improved long term profitability, and a higher justified valuation multiple.

What's in the News

  • Secured exclusive rights to negotiate the purchase of Restaurant Brands International’s Burger King operations in Japan in a potential deal valued at around ¥70 billion ($452 million), signaling a push into franchise backed food assets in Asia (Nikkei Asia)
  • Repurchased 2,783,143 shares for roughly $2.0 billion in the quarter ended September 30, 2025, completing a $5.0 billion buyback totaling 8,096,675 shares, or about 2.53% of shares outstanding, under the April 14, 2025 authorization
  • Goldman Sachs Asset Management is in late stage talks to acquire a controlling stake in Excel Sports Management at a valuation of about $1 billion, expanding its exposure to sports and entertainment related assets (Financial Times, via Reuters)
  • Goldman Sachs & Co. LLC and InspereX LLC have been added as co lead underwriters on multiple fixed income offerings totaling roughly $29 million, underscoring the firm’s continued role in debt capital markets

Valuation Changes

  • Fair Value Estimate: increased from $815 to $900 per share, reflecting a modestly higher intrinsic valuation.
  • Discount Rate: raised significantly from 9.73% to 12.50%, indicating a higher required return and risk adjustment.
  • Revenue Growth Assumption: reduced slightly from 8.14% to 7.91% annually, incorporating more conservative top line expectations.
  • Net Profit Margin: increased modestly from 29.45% to 30.76%, reflecting expectations for improved long term profitability.
  • Future P/E Multiple: raised from 14.83x to 16.19x, implying a higher justified valuation multiple on forward earnings.

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Disclaimer

AnalystHighTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystHighTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystHighTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.