Goldman Sachs Gets a Big Upgrade From Bank of America

Goldman Sachs wins a vote of confidence from analysts at Bank of America and other firms amid rising optimism that a growing economy will mean more deals for the investment banking giant.
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Shares of Goldman Sachs (GS) - Get Report edged higher Thursday amid a flurry of bullish analyst recommendations led by Bank of America, even as other big financial giants saw their ratings cut.

Goldman Sachs' stock price rose 1.52% to $241.38 a share Thursday after an upgrade to buy from neutral by Bank of America analyst Michael Carrier.

The analyst contended that Goldman is poised to reap the benefits of a growing economy, while also citing the "relatively attractive valuation" of the investment banking firm's stock price and its overall "strategic repositioning."

The upgrade also came after Goldman Sachs, in a bid to better make its case to investors, revamped the way it reports its results by division to highlight the growth of its consumer business. The reporting changes were made ahead of the company's first-ever investor day conference later in January.

By contrast, Wells Fargo (WFC) - Get Report,  Morgan Stanley (MS) - Get Report, JPMorgan Chase (JPM) - Get Report and Citigroup (C) - Get Report have all been hit with analyst downgrades in recent days amid unease over the uncertainty that comes with a presidential election year and anxiety over new accounting rules.

Carrier also hiked his price target on shares of Goldman Sachs stock to $270, up from $245 previously and well above the $248 a share average among analysts covering the investment banking and financial services firm, according to data from Bloomberg.

Meanwhile, RBC analyst Gerard Cassidy raised his price target on Goldman to $240 a share, up from $220, while Buckingham Research went with a far more bullish target of $290 a share, up from $219 a share previously.