Goldman Sachs upgraded to outperform by C Suisse, shares off lows

Goldman Sachs Blink

Goldman Sachs upgraded to outperform by Credit Suisse, shares off lows.

Goldman Sachs was upgraded to outperform from neutral by Credit Suisse during the trading day Tuesday after reporting better-than-expected quarterly earnings.

"Upside was revenue, expense and tax rate driven; better yet for the forward look — time to start thinking about tomorrow — is the progress against the bank's previously articulated growth initiatives, the health of the banking pipeline and the realization of operating leverage," analyst Susan Katzke said in a note to clients Tuesday.

The analyst raised her 2018 and 2019 earnings per share estimates to $24.70 and $25.75, respectively, while keeping her 12-month price target of $280 unchanged. Katzke's price forecast represents 20 percent upside over the next year.

The daytime upgrade came just a few hours after Goldman Sachs reported that the bank's profit surged 40 percent to $2.57 billion in the second quarter, surpassing Street revenue expectations in every major business with the exception of trading. The company's earnings of $5.98 per share also beat the $4.66 also topped projections.

However, the shares fell on a disappointing rise in litigation costs.

Shares of the bank rose off their lows as word of the call spread on Wall Street and were last trading down 0.7 percent.

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