Wells Fargo believes shares of Goldman Sachs will appreciate more. Banking analyst Mike Mayo raised his price target at the Wall Street investment bank to $420 from $390 a share, said in a Tuesday note to clients that investors does not take into account a certain year of profit. GS YTD mountain Goldman said from the start of the year, “GS doesn’t get credit for expected returns in year 23 and 24 that are below target and could see bigger gains if targets are met,” Mayo said, noting that A new analysis of return on tangible equity for physical book positions Goldman Sachs is undervalued by 19% compared to its peers. Shares of Goldman Sachs are up 9% so far in 2023. Mayo’s adjusted price target implies a gain of more than 12% from Tuesday’s closing price. Last month, the investment bank posted its biggest loss in earnings in a decade as revenue fell and costs rose amid a challenging macro environment. Mayo sees the upcoming investor day as an opportunity for management to extrapolate certain goals, such as 14% to 16% return on equity and 15% to 17% return on equity tangible owner. The headcount cuts earlier this year and a solid start to capital markets in 2023 should provide some support. “Even if GS only achieves the 12.5% ROTE we expect by 2023, peer-to-peer valuations would suggest that GS should trade at 1.4x book,” Mayo said. tangible instead of 1.2 times, or about one-fifth above current levels.” – Michael Bloom of CNBC contributed reporting