Goldman Sachs stock price continues to be undervalued on the U.S. stock market. Thus, the quotes of a bank fell by more than 10% since the beginning of the year due to increased attention from regulators. Also it is worth noting that the securities are undervalued by 20% compared to its direct competitor Morgan Stanley and probably will compensate this difference after solving the problems with regulators and judicial institutions.
Close attention from regulators and new rules for banks are part of a new economic security of the U.S. due to the consequences of the financial crisis. However, the bank continues to be a key player in its core sectors underwriting and trading securities.
We expect growth of shares in the medium term, but consider the risk of a possible drop on the stock markets.