Street View: Goldman Sachs finds fuel in AI and dealmaking

GOLDEN DEALS ON TAP

** Wells Fargo ("overweight," PT: $1,325) says "GS shows, more than any other, that mega-banks benefit from mega-IPOs, mega mergers, and mega-financings for what they label as early stages of the AI buildout"

** Jefferies ("buy," PT: $1,299) says record equities revenue and prime balances, growing large-cap mergers and acquisitions activity, and a five-year-high deal backlog should support GS's earnings growth

** Morningstar (fair value: $730) says co is benefiting from strong AI infrastructure spending and rising demand for liquidity and hedging services, with further upside possible from potential Anthropic and OpenAI IPOs and an expected recovery in M&A activity

** KBW ("market perform," PT: $1,130) says GS's Q2 results highlights its leading position in dealmaking and trading, and expects the bank to remain above its medium-term profitability targets in 2026 and 2027

** Goldman Sachs GS.N on Tuesday beat Wall Street estimates for Q2 profit, helped by a rebound in dealmaking activity and record equities trading revenue as market volatility sparked by the U.S.-Iran conflict boosted client activity

** Median PT of 24 brokerages covering the stock is $1,087.5 - LSEG-compiled data