Wells Fargo lowered the firm’s price target on Goldman Sachs (GS) to $680 from $720 and keeps an Overweight rating on the shares as part of a Q1 earnings preview for the large-cap banks. The firm is bullish on the sector on a one-year view citing the “biggest deregulation in three decades,” but note that Q1 outlooks “may be tricky” given policy uncertainties. Wells reduced estimates by 4% for Q1 and 2% through 2027. The key reason is a “degree of paralysis” from policy uncertainty that makes Wells more conservative for investment banking, loans, fixed asset repricing, and reserves, the analyst tells investors in a research note. Citi (C) and JPMorgan (JPM) remain the firm’s top picks.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See today’s best-performing stocks on TipRanks >>
Read More on GS: