US Brokers: From strength to strength: raising EPS and target prices post Q2 2026; upgrade Goldman Sachs to Hold

Research evidence excerpt

US Brokers: From strength to strength: raising EPS and target prices post Q2 2026; upgrade Goldman Sachs to Hold

20 July 2026

US Brokers EquitiesCapital Markets

From strength to strength: raising EPS and target

prices post Q2 2026; upgrade Goldman Sachs to Hold United States

◆ Q2 26 “blockbuster” prints from GS & MS lead to earnings Saul Martinez

power reset; we lift EPS/target prices; upgrade GS to Hold Head of US Financials Research HSBC Securities (USA) Inc.

◆ Despite share outperformance, GS’s PE multiple has fallen saul1.martinez@us.hsbc.com+1 212 525 6874

YTD as earnings estimates moved much higher Calvin Carlo*

Analyst, US Financials

◆ Raise TPs: GS to USD995 (from USD834), MS to USD215 HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo

Financiero HSBC

(from USD190) calvin.carlo@hsbc.com.mx

+52 55 8551 5022

Goldman Sachs (GS) and Morgan Stanley (MS) reported blockbuster Q2 2026 Dmitriy Leskin

results last week (see here and here). Both companies not only reported exceptional HSBC Securities (USA) Inc.

Equities sales and trading results, but investment banking was solid across products, dmitriy.leskin@us.hsbc.com +1 212 525 4110

and wealth management benefited from a supportive market backdrop and strong net

flows. We raise EPS estimates materially on the back of the results. Our baseline * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

profitability estimates are now much higher than they were entering 2026, and our not registered/ qualified pursuant to FINRA regulations

target prices for both rise accordingly.

Upgrade GS to Hold from Reduce: rosier earnings outlook/PE multiple

compression underpin upgrade. On the eve of earnings season (13 July), GS

traded at 15.9x our 2027e EPS estimate. Despite the shares rising c2% since, GS