Growth initiatives, higher volatility good for GS
Our analysis indicates that GS will rebound strongly from a sub-par 2017 thanks to the cycling of weak comps, higher organic growth and a likely rebound in volatility. The new strategic initiatives will have a greater impact on 2019 earnings and we have increased our FY19 EPS forecast by 2%. Our price target increases to $282 (from $254) given a shift to a 50/50 PE/PB valuation methodology. However, our PT increases to $300 if corporate tax reform is enacted at 21%. We reiterate our Overweight rating and view GS as an excellent way for investors to benefit from improved economic growth and greater volatility as we head into 2018.Goldman Sachs Group is a bank holding company and financial holding company. The company is a global investment banking, securities and investment management firm that provides a range of financial services to corporations, financial institutions, governments and individuals. The company operates in four business segments: Investment Banking, which serves public and private sector clients and provides financial advisory services; Global Markets, which serves its clients who come to the company to buy and sell financial products, raise funding and manage risk; Asset Management, which provides investment services; and Consumer & Wealth Management, which provides a range of wealth advisory and banking services.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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