Shares of Goldman Sachs Group Inc. rallied Tuesday, to provide the biggest boost for Dow Jones Industrial Average , but some Wall Street analysts weren’t as enthusiastic as investors about the details of Goldman’s outline for growth. The stock climbed $6.29, or 2.8%, in afternoon trade. That added about 43 points to the Dow’s price, which was up 63 points at 22,121, above the Aug. 7 record close of 22,118.42. Goldman said earlier it targeted $5 billion in incremental revenue over the next three years, including more than $1 billion from its fixed income, currency and commodities (FICC) trading business, another $1 billion from its investment management business and over $2 billion from its lending and financing efforts. JMP analyst Devin Ryan appreciated the “good detail” around where the biggest opportunities are seen, but characterized the areas of focus as “largely incremental more than transformational.” Buckingham Research analyst James Mitchell reiterated his neutral rating, saying while Goldman’s revenue growth target was “laudable,” he remained “somewhat skeptical,” as much of the growth is expected from “challenging markets where rivals are fiercely competing for market share.” Goldman’s stock has lost 5.3% year to date, while the SPDR Financial Select Sector ETF has rallied 6.7% and the Dow has run up 11.5%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News