· Event impact

Oppenheimer Downgrades Goldman Sachs and Morgan Stanley to Underperform

Type: creditConfidence: 0.9Verified: keep
Earnings multiple contraction in the financial sector.

Transmission path

Earnings multiple contraction in the financial sector.

Market mechanism

Earnings multiple contraction in the financial sector.

Extended read

Oppenheimer's move signals a shift in sentiment for the bulge bracket. The firm argues that the recent surge in investment banking activity, largely driven by high-profile IPOs like SpaceX, is already fully reflected in share prices, leaving little room for upside surprise in the upcoming Q2 reports.

Exposed assets

GS · MS

Countries: US

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