Goldman's Symphony Of Ratings: Asset Management Moves For A Dynamic 2024
Portfolio Pulse from Lekha Gupta
Goldman Sachs analyst Alexander Blostein revised ratings on several asset management stocks, downgrading Blackstone Inc (BX), Charles Schwab Corp (SCHW), and Raymond James Financial Inc (RJF) to Neutral, and CME Group Inc (CME) to Sell. Upgrades were given to State Street Corporation (STT) and Ameriprise Financial Inc (AMP) to Buy. The sector is expected to see a more constructive EPS growth trajectory in 2024, with a wider dispersion in share price performance.
January 03, 2024 | 8:02 pm
News sentiment analysis
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POSITIVE IMPACT
Ameriprise Financial upgraded to Buy on durable cash revenue outlook and strong repurchase program.
The upgrade is based on the company's solid revenue prospects and disciplined expense management, which could positively influence its stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
State Street upgraded to Buy due to a liability-sensitive balance sheet and strong share buybacks.
The upgrade reflects positive expectations for the company's financial performance, which could lead to increased investor interest and a rise in stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Blackstone downgraded to Neutral due to slowing management fee growth and risks to consensus EPS estimates.
The downgrade by a prominent analyst could lead to a negative short-term sentiment among investors, potentially impacting the stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
CME Group downgraded to Sell due to cyclical normalization in rate volumes and competitive pressures.
The Sell rating indicates significant concerns about the company's future earnings potential, which could lead to a bearish outlook for the stock.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 95
NEGATIVE IMPACT
Raymond James Financial downgraded to Neutral due to rate-sensitive asset base and EPS risks.
The downgrade is based on the company's exposure to interest rate fluctuations, which could negatively affect its earnings and stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 90
NEGATIVE IMPACT
Charles Schwab downgraded to Neutral as lower interest rates reintroduce EPS risks into 2024.
The downgrade reflects concerns about earnings sustainability in a lower interest rate environment, which could dampen investor sentiment.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 90