Goldman Sachs shares rebound on Tuesday, bank aims to reach more mid-sized corporate customers, CEO Solomon says

February 13, 2019 8:25 am

According to a statement by Goldman Sachs Group’s Chief Executive Officer David Solomon on Tuesday, the Wall Street bank strives to expand its mid-sized corporate clientèle over the upcoming several years.

Goldman Sachs shares closed higher for the fifth time in the past twelve trading sessions in New York on Tuesday. It has also been the sharpest daily surge since January 18th. The stock went up 1.65% ($3.16) to $194.49, after touching an intraday high at $195.68, or a price level not seen since February 7th ($195.88).

Shares of Goldman Sachs Group Inc have risen 16.43% so far in 2019 compared with a 9.49% gain for the benchmark index, S&P 500 (SPX).

In 2018, Goldman Sachs’s stock retreated 34.43%, thus, it underperformed the S&P 500, which registered a 6.24% loss.

“There are lots and lots of companies with (enterprise) value at $500 million to $3 billion,” David Solomon said at a conference in Florida hosted by Credit Suisse Group AG, cited by Reuters.

“There’s real … expansion opportunity for the firm … to open the aperture of corporations that we bring Goldman Sachs to,” he added.

In 2018 the bank initiated the development process of a technology platform, which would allow it to handle cash payments and receipts of money of its corporate customers worldwide. The product is expected to be launched in 2020.

According to Solomon, strategies such as the addition of more small and mid-sized corporate customers or the launch of corporate cash management services can generate “a couple of million dollars of revenue” at only a moderate cost to the financial group.

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding Goldman Sachs’s stock price, have a median target of $226.00, with a high estimate of $302.00 and a low estimate of $185.00. The median estimate represents a 16.20% upside compared to the closing price of $194.49 on February 12th.

The same media also reported that 15 out of 28 surveyed investment analysts had rated Goldman Sachs’s stock as “Hold”, while 10 – as “Buy”.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Goldman Sachs Group Inc (GS) are presented as follows:

Central Pivot Point – $193.07
R1 – $197.92
R2 – $204.17
R3 – $209.02
R4 – $213.87

S1 – $186.82
S2 – $181.97
S3 – $175.72
S4 – $169.47

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