Goldman Sachs’ Investor Day Was More About Refocusing Than Grand Plans

Narrow-moat Goldman Sachs recently had an investor day where it reiterated financial targets, provided a progress report on initiatives since its previous investor day three years ago, and laid out adjusted strategic priorities. Goldman Sachs’ main financial targets for the medium term (3-5 years) remain a 14% to 16% return on equity, a 15% to 17% return on tangible equity, or ROTE, and an expense ratio of around 60%. Our $404 fair value estimate for the firm has a medium-term ROTE slightly below management’s target at 13.5%.