HSBC Sees ‘Unattractive’ Risk Reward for Goldman Sachs, Morgan Stanley
Live Mint-- Goldman Sachs Group Inc. and Morgan Stanley shares are showing an “unattractive risk reward profile” in the wake of the recent bank rally, HSBC analysts said, adding that investors should be wary of arguments that an investment banking “supercycle” will drives shares much higher. The analysts lead by Saul Martinez said that while investment banking fees likely will increase, their estimates for Goldman Sachs and Morgan Stanley already factor in around a 30% increase from 2024 levels. Morgan Stanley and Goldman Sachs are both up 13% and 14% respectively since Nov. 6, when the KBW Bank Index surged almost 10% in the day after the election. The index which tracks the top 34 U.S. banks, including names like Citigroup Inc., JPMorgan Chase & Co., Goldman Sachs and Morgan Stanley, is on track for its best year since 1997.
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