· Event impact

Oppenheimer Downgrades GS and MS to Underperform on Valuation Concerns

Type: creditConfidence: 0.9Verified: keep
Equity risk premium compression in financials leading to sector-wide de-rating.

Transmission path

Equity risk premium compression in financials leading to sector-wide de-rating.

Market mechanism

Equity risk premium compression in financials leading to sector-wide de-rating.

Extended read

The downgrade reflects a shift in sentiment regarding the capital markets recovery. While Q1 2026 was strong, Oppenheimer suggests that current stock prices do not account for a potential slowdown in deal flow or IPO activity. This move specifically targets the high-multiple leaders in the investment banking space.

Exposed assets

GS · MS

Countries: US

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