Goldman Downgraded, Block Upgraded: Top Wall Street Analyst Calls

Wall Street witnessed a series of analyst rating changes, with Goldman Sachs (GS) downgraded and Block (SQ) upgraded. The changes also covered other major financial stocks such as Visa (V) and Mastercard (MA).

Rating Changes

• Goldman Sachs (GS): Downgraded from "Buy" to "Neutral," with a price target cut from $550 to $500.
• Block (SQ): Upgraded from "Neutral" to "Buy," with a price target increase from $80 to $110.

Analyst Rationale

For Goldman Sachs, the analyst cited potential weakness in trading revenues and rising operating costs. For Block, the upgrade was based on improved performance of the Square platform and expansion in consumer finance services.

Context

These changes come amid volatility in the financial sector due to interest rate shifts and inflation. Other notable calls include:

• Bank of America (BAC): Price target raised to $45.
• Morgan Stanley (MS): Price target cut to $100.
• American Express (AXP): Upgraded to "Buy."

Conclusion

The divergent analyst views reflect uncertainty about the financial sector's outlook. While some large banks are viewed with caution, there is optimism toward fintech companies like Block.