Goldman Sachs: Increasing Valuation to $417 From $368; Material Moves in Revenue and Expenses Likely

We are increasing our fair value estimate for narrow-moat-rated Goldman Sachs to $417 from $368 per share. This is about 12 times forward earnings and 1.4 times tangible book value. About $10 of the increase is from earnings since our previous valuation update, with the remainder from miscellaneous adjustments, such as higher client assets under supervision, forecasting less of a decline in trading revenue, and incorporating estimated benefits to expenses from a restructuring of the company's consumer credit business.