Shortly after the opening, we will be buying 25 shares of Goldman Sachs at roughly $583.70 per share. Following Monday’s trade, Jim Cramer’s Charitable Trust will own 123 shares of GS, increasing its weighting to 2% from about 1.6% Goldman Sachs shares were muted Monday after an analyst downgrade. UBS moved to the sidelines, downgrading its rating on the bank to neutral from buy. The analysts, however, raised their price target to $610 from $600. The analysts moved their target multiple of the bank to 11.7 times its 2026 earnings estimates, down from 13 times. It’s important to note that they raised their earnings estimates by 11% for 2025 and 14% in 2026. Although UBS believes Goldman Sachs is a “strong, well-positioned franchise,” it moved to neutral on concerns about valuation. They don’t think Goldman has enough catalysts for the stock to continue its re-rating, noting that asset and wealth management is unlikely to grow fast enough to be an earnings driver. We’ve talked before about how the alternative investments industry is generally a higher multiple franchise relative to traditional banks and asset management. It’s one reason why we are fans of BlackRock ‘s recent acquisitions. UBS may think Goldman’s asset and wealth management business won’t be a material driver of firmwide growth for a whole, but Goldman could always leverage its franchise to accelerate this timeline. Analysts at Barclays raised their Goldman Sachs price target to $713 from $588 on Monday, maintaining their overweight buy rating. They think that bank price-to-earnings multiples can continue to expand off the solid economic backdrop, easing regulatory outlook, higher returns, and increase in mergers and acquisitions. We’re in the Barclays camp. These points are more central to our thesis, which is why the UBS downgrade is creating an opportunity for us to scale deeper into our position without paying up. (Jim Cramer’s Charitable Trust is long GS. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
