STT - Goldman's Symphony Of Ratings: Asset Management Moves For A Dynamic 2024 | Benzinga
Goldman Sachs analyst Alexander Blostein revised the rating on several asset management stocks amid an updated outlook for American Capital Markets.
The year-end 2023 rally in risk assets and expectations for lower interest rates have driven investors' enthusiasm for Capital Markets stocks, with the sector up 27% in 2023 on average, led by over 60% gains by Alternative Asset Managers, writes the analyst.
The analyst expects the capital velocity and transaction activity to improve in 2024 (vs. depressed levels in 2023) but anticipates it to remain below historical averages due to the cumulative effect of a higher cost of capital.
The analyst downgraded Blackstone Inc (NYSE: BX), Charles Schwab Corp (NYSE: SCHW), and Raymond James Financial Inc (NYSE: RJF) to Neutral from Buy.
In particular, the analyst downgraded ...