In "Major Banks," CICC maintains Goldman Sachs' "Outperform" rating, with quarterly results exceeding expectations

CICC published a research report indicating that Goldman Sachs (GS.US) had a revenue of USD 15.184 billion in the third quarter, a year-on-year increase of 20%; the net profit attributable to common shareholders was USD 3.86 billion, a year-on-year increase of 39%, corresponding to earnings per share (diluted) of USD 12.25, all exceeding CICC and market consensus expectations, mainly driven by high growth in investment banking and FICC business as well as optimized cost control.

Considering the positive trend in Goldman Sachs' business growth and optimized cost control, CICC has raised its net profit attributable to common shareholders for this year and next year by 5% and 3%, respectively. The current stock price corresponds to forecasted price-to-book ratios of 2.1 times and 1.9 times for this year and next year; maintaining an "outperform industry" rating, due to profit improvement and increased market risk appetite, the target price has been raised by 9% to USD 825, corresponding to forecasted price-to-book ratios of 2.2 times and 2 times for this year and next year