Goldman Sachs (GS) Gains BofA’s Attention for Return on Equity Potential Among Other Catalysts

The Goldman Sachs Group, Inc. (NYSE:GS) is one of the 10 cheap Jim Cramer stocks to invest in. On June 11, BofA analyst Ebrahim Poonawala maintained a Buy rating on the stock with a price target of $700. The analyst highlighted GS stock as a strong candidate for a secular re-rating due to its ongoing shift toward a structurally higher return on equity, its ability to deliver superior and durable earnings per share growth, and its better-than-perceived resiliency in capital markets.

Poonawala also noted that Goldman Sachs (NYSE:GS) possesses a strong combination of scale and flexibility, which makes it an attractive investment at current levels. Moreover, at the Morgan Stanley US Financials, Payments & CRE Conference on June 11, CEO & President, Brian Thomas Moynihan, highlighted the firm’s 25 straight quarters of net new checking account growth in consumer banking. The retail business, which accounts for 70% of customers and 30% of balances, maintains average checking balances triple the industry standard.

Over the past decade, primary account usage increased from 60% to 90%, with notable gains in customer satisfaction. He added that Goldman Sachs’ (NYSE:GS) sales and trading revenue has increased year-over-year for 12 consecutive quarters, with the 13th expected.

A close-up of a financial advisor giving advice to a customer, demonstrating the importance of consumer and wealth management.

Furthermore, on June 11, Cramer commented:

“I’ve tried to be skeptical of these three red hot areas, but as I told you last week, once the thing really takes off, you can’t be a scold. I’m not about you not making money, I’m about you making money. And the market’s saying, listen, these companies can raise some money, and I think you’re going to see scores more coming public. By the way, we own Goldman Sachs for the Charitable Trust; that’s another way to play it. The investment banks are eager to give it to them, and they know that there’s a thirst that can’t be slaked without more deals.”

Goldman Sachs (NYSE:GS) is a financial company that provides advisory, lending, investment management, and banking services across a wide range of asset classes and financial products, including services such as mergers and acquisitions advice, underwriting, credit solutions, investment strategies, and transaction banking.

While we acknowledge the potential of GS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.