A deteriorating macro picture could weigh down Goldman Sachs ' capital markets activity, according to Oppenheimer. Analyst Chris Kotowski downgraded shares of the investment bank to perform from outperform. He also removed his price target of $709 per share. The analyst cited a "delayed or cancelled" rebound in mergers and acquisitions activity as the main catalyst for his downgrade. "Coming into this year, we were very optimistic about a major rebound in M & A activity, and its attendant financing activity," he wrote. "There is, however, thus far no visible sign of this M & A rebound … Moreover, we fear that the current uncertainty over tariffs, a fiscal ' detox ' and the general upheaval of 80 years of trade and security arrangements is likely to cause a pause in M & A activity." As a result, Kotowski said he was adopting a "more cautious stance" on his coverage universe, instead shifting his focus on stocks with the best secular growth stories. The analyst added that he now assumes investment banking revenues for the three remaining quarters of 2025 to be flat to 2024, while his previous forecast called for revenues becoming more normalized versus GDP. Goldman shares fell 1% following the downgrade. Analysts in general are mostly split on the stock. LSEG data shows that 13 of 23 who cover the stock rate it a buy or strong buy, while another 10 have a hold rating on it. Oppenheimer also downgraded shares of Jefferies Financial Group and Carlyle Group to perform from outperform.
