Jefferies Hikes Q1 Earnings Estimates for Goldman Sachs and Morgan Stanley on Trading Surge

Key Facts

1Jefferies raised its earnings per share estimate for Goldman Sachs to $15.60, an 11% increase.

2Jefferies increased Morgan Stanley's earnings per share estimate by 7% to $2.87.

3The expected growth is attributed to a surge in trading activity and steady dealmaking.

Jefferies analysts have upwardly revised their first-quarter earnings per share estimates for Goldman Sachs and Morgan Stanley. The brokerage raised its EPS forecast for Goldman Sachs by 11% to $15.60, citing a significant uptick in trading activity. Similarly, Morgan Stanley's earnings estimate was increased by 7% to reach $2.87 per share. This growth is primarily attributed to heightened market volatility driving trading volumes and a resilient environment for investment banking. Despite broader economic uncertainties, activities in mergers and acquisitions (M&A) and initial public offerings (IPOs) have remained firm. These positive revisions are expected to bolster investor sentiment for major banking stocks ahead of their official earnings reports.