Goldman Sachs Highlights Significant Valuation Gap in UK Equities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy GS?
Source: Yahoo Finance
- Significant Valuation Discount: Goldman Sachs highlights that the UK market is currently trading at a roughly 40% discount to the US on a sector-neutral basis, a level deemed 'very deep' historically, indicating severe undervaluation.
- Decline in Domestic Investment: Analysts noted that UK pension and insurance funds have drastically reduced their local stock exposure from over 50% in the late 1990s to just 4% today, reflecting a long-term trend of 'de-equitization' that has left the market without domestic investor support.
- Attractive Dividend Yields: Despite the lack of domestic enthusiasm, Goldman argues that the UK market now offers an appealing 'yield play', with the FTSE 100 providing a dividend yield of approximately 4%, significantly higher than the 1.5% yield of the S&P 500, presenting a good return opportunity for investors.
- Increased M&A Activity: Goldman points out that UK companies are increasingly engaging in aggressive share buybacks to fill the void left by domestic investors, a trend expected to continue through 2026, while the valuation mismatch has made UK firms prime targets for foreign acquisitions, attracting significant international buyers.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GS
Wall Street analysts forecast GS stock price to rise
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 900.000
Low
604.00
Averages
951.45
High
1100
Current: 900.000
Low
604.00
Averages
951.45
High
1100
About GS
The Goldman Sachs Group, Inc. is a global financial institution that delivers a range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Its segments include Global Banking & Markets, Asset & Wealth Management and Platform Solutions. The Global Banking & Markets segment offers a range of services, including financing, advisory services, risk distribution, and hedging for its institutional and corporate clients. It facilitates client transactions and makes markets in fixed income, equity, currency and commodity products. The Asset & Wealth Management segment manages assets and offers investment products across all asset classes to a diverse set of clients. It also provides investing and wealth advisory solutions. The Platform Solutions segment includes consumer platforms, such as partnerships offering credit cards and point-of-sale financing, and transaction banking and other platform businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Goldman Sachs Private Credit Corp Announces $750 Million Offering of 6.150% Notes Maturing in 2031, Filed with SEC on April 14, 2026
Goldman Sachs Private Credit Corp Offering: Goldman Sachs is offering $750 million in notes with a 6.15% interest rate, due in 2031.
Filing Date: The offering is set to be filed with the SEC on April 14, 2026.
See More
Goldman Sachs Highlights Significant Valuation Gap in UK Equities
- Significant Valuation Discount: Goldman Sachs highlights that the UK market is currently trading at a roughly 40% discount to the US on a sector-neutral basis, a level deemed 'very deep' historically, indicating severe undervaluation.
- Decline in Domestic Investment: Analysts noted that UK pension and insurance funds have drastically reduced their local stock exposure from over 50% in the late 1990s to just 4% today, reflecting a long-term trend of 'de-equitization' that has left the market without domestic investor support.
- Attractive Dividend Yields: Despite the lack of domestic enthusiasm, Goldman argues that the UK market now offers an appealing 'yield play', with the FTSE 100 providing a dividend yield of approximately 4%, significantly higher than the 1.5% yield of the S&P 500, presenting a good return opportunity for investors.
- Increased M&A Activity: Goldman points out that UK companies are increasingly engaging in aggressive share buybacks to fill the void left by domestic investors, a trend expected to continue through 2026, while the valuation mismatch has made UK firms prime targets for foreign acquisitions, attracting significant international buyers.
See More
Banking Sector Shows Resilience Amid Geopolitical Turmoil
- Investment Banking Surge: Goldman Sachs reported a 48% year-over-year increase in investment banking revenue to $2.48 billion, with CEO David Solomon noting a robust investment banking environment, which significantly contributes to advisory fees and capital market revenues, showcasing the firm's strength in M&A and IPOs.
- Credit Card Growth: Despite a slight overall revenue miss, Wells Fargo's new credit card account openings surged nearly 60% year-over-year, with the consumer banking and lending division seeing a 6.6% revenue increase in Q1, indicating strong consumer spending resilience even amid rising oil prices, enhancing the bank's profitability.
- Trading Desk Performance: The volatility from the Iran-U.S. conflict led to a 27% year-over-year increase in Goldman’s equities revenue, reaching a record $5.33 billion, as clients actively repositioned portfolios, reflecting the firm's execution capabilities and risk management in a dynamic environment.
- Market Adaptability: While geopolitical uncertainty affected some deals, Morgan Stanley and Bank of America saw trading revenues rise by 29% and 30% respectively, demonstrating that banks can still capitalize on market fluctuations, highlighting their ability to adapt to changing market conditions.
See More
Energy Stocks Hit by Oil Price Drop, Buying Opportunities Arise
- Oil Price Impact: Brent crude futures fell over 8% and West Texas Intermediate dropped 10%, leading to a broad decline in energy stocks, which may present buying opportunities for stocks favored by Goldman Sachs.
- Goldman’s Stock Picks: Analyst Neil Mehta noted that despite geopolitical and commodity volatility, the energy stocks he recommends are fundamentally supported in the mid-term, particularly with a bullish long-term view that Brent crude will normalize at $75 per barrel.
- Cash Flow Growth Potential: ConocoPhillips is expected to achieve a 20% to 25% compound annual growth rate in free cash flow per share through cost reductions and major projects coming online, with a price target of $144 implying an 18% upside from Thursday's close.
- Electrification Investment Theme: Vistra is performing well under the electrification theme, with attractive fundamentals, a price target of $212 suggesting a 28% upside, and recent agreements with Meta providing additional support for future growth.
See More
Goldman Sachs Bullish on Corvus Pharmaceuticals Stock Outlook
- Goldman Sachs Rating Boost: Goldman Sachs initiates coverage of Corvus Pharmaceuticals with a buy rating and sets a $40 price target, implying a 166% upside from Thursday's close, reflecting strong market confidence in the company's new drug potential.
- Stock Price Surge: Following Goldman Sachs' report, Corvus Pharmaceuticals' stock rose approximately 9%, indicating investor enthusiasm for its new oral medication soquelitinib, which is expected to address a significant market need.
- Strong Market Demand: The global market for moderate-to-severe atopic dermatitis treatments is projected to exceed $24 billion by 2035, highlighting Corvus Pharmaceuticals' strategic positioning in this rapidly growing sector, especially as demand for non-steroidal therapies increases.
- Clinical Trial Success: Soquelitinib demonstrated positive effects in 75% of participants during early-stage clinical trials, showcasing its significant efficacy in a competitive dermatological treatment landscape, further solidifying Goldman Sachs' bullish outlook on the stock.
See More
ICAS Warns NI Cap Could Discourage Pension Saving
- Pension Saving Risks: ICAS warns that the Chancellor's cap on national insurance relief could discourage pension saving, particularly as some employers withdraw salary sacrifice schemes, indicating that short-sighted tax policies may exacerbate existing pension inadequacies.
- Employer Reactions: According to ICAS tax director Katie Close, the withdrawal of salary sacrifice schemes by employers is unsurprising, as the changes announced in the 2025 Budget will have long-lasting impacts on both individuals and businesses, potentially reducing pension provision.
- Low Pension Participation: ICAS cites research from the IFS and the Pensions Commission, revealing that over a fifth of private sector workers do not save into workplace pensions at all, and among those who do, around 30-40% are not on track for adequate retirement income, with policy changes risking further exacerbation of this issue.
- Policy Recommendations: ICAS urges the establishment of coherent, stable, and long-term pension rules to instill confidence in employers, savers, and the wider industry, ensuring that the core purpose of pension policy is to secure sufficient retirement income for individuals, thereby avoiding widening existing inequalities such as the gender pensions gap.
See More
Goldman Sachs Private Credit Corp Announces $750 Million Offering of 6.150% Notes Maturing in 2031, Filed with SEC on April 14, 2026
Goldman Sachs Private Credit Corp Offering: Goldman Sachs is offering $750 million in notes with a 6.15% interest rate, due in 2031.
Filing Date: The offering is set to be filed with the SEC on April 14, 2026.
See More
Goldman Sachs Highlights Significant Valuation Gap in UK Equities
- Significant Valuation Discount: Goldman Sachs highlights that the UK market is currently trading at a roughly 40% discount to the US on a sector-neutral basis, a level deemed 'very deep' historically, indicating severe undervaluation.
- Decline in Domestic Investment: Analysts noted that UK pension and insurance funds have drastically reduced their local stock exposure from over 50% in the late 1990s to just 4% today, reflecting a long-term trend of 'de-equitization' that has left the market without domestic investor support.
- Attractive Dividend Yields: Despite the lack of domestic enthusiasm, Goldman argues that the UK market now offers an appealing 'yield play', with the FTSE 100 providing a dividend yield of approximately 4%, significantly higher than the 1.5% yield of the S&P 500, presenting a good return opportunity for investors.
- Increased M&A Activity: Goldman points out that UK companies are increasingly engaging in aggressive share buybacks to fill the void left by domestic investors, a trend expected to continue through 2026, while the valuation mismatch has made UK firms prime targets for foreign acquisitions, attracting significant international buyers.
See More
Banking Sector Shows Resilience Amid Geopolitical Turmoil
- Investment Banking Surge: Goldman Sachs reported a 48% year-over-year increase in investment banking revenue to $2.48 billion, with CEO David Solomon noting a robust investment banking environment, which significantly contributes to advisory fees and capital market revenues, showcasing the firm's strength in M&A and IPOs.
- Credit Card Growth: Despite a slight overall revenue miss, Wells Fargo's new credit card account openings surged nearly 60% year-over-year, with the consumer banking and lending division seeing a 6.6% revenue increase in Q1, indicating strong consumer spending resilience even amid rising oil prices, enhancing the bank's profitability.
- Trading Desk Performance: The volatility from the Iran-U.S. conflict led to a 27% year-over-year increase in Goldman’s equities revenue, reaching a record $5.33 billion, as clients actively repositioned portfolios, reflecting the firm's execution capabilities and risk management in a dynamic environment.
- Market Adaptability: While geopolitical uncertainty affected some deals, Morgan Stanley and Bank of America saw trading revenues rise by 29% and 30% respectively, demonstrating that banks can still capitalize on market fluctuations, highlighting their ability to adapt to changing market conditions.
See More
Energy Stocks Hit by Oil Price Drop, Buying Opportunities Arise
- Oil Price Impact: Brent crude futures fell over 8% and West Texas Intermediate dropped 10%, leading to a broad decline in energy stocks, which may present buying opportunities for stocks favored by Goldman Sachs.
- Goldman’s Stock Picks: Analyst Neil Mehta noted that despite geopolitical and commodity volatility, the energy stocks he recommends are fundamentally supported in the mid-term, particularly with a bullish long-term view that Brent crude will normalize at $75 per barrel.
- Cash Flow Growth Potential: ConocoPhillips is expected to achieve a 20% to 25% compound annual growth rate in free cash flow per share through cost reductions and major projects coming online, with a price target of $144 implying an 18% upside from Thursday's close.
- Electrification Investment Theme: Vistra is performing well under the electrification theme, with attractive fundamentals, a price target of $212 suggesting a 28% upside, and recent agreements with Meta providing additional support for future growth.
See More
Goldman Sachs Bullish on Corvus Pharmaceuticals Stock Outlook
- Goldman Sachs Rating Boost: Goldman Sachs initiates coverage of Corvus Pharmaceuticals with a buy rating and sets a $40 price target, implying a 166% upside from Thursday's close, reflecting strong market confidence in the company's new drug potential.
- Stock Price Surge: Following Goldman Sachs' report, Corvus Pharmaceuticals' stock rose approximately 9%, indicating investor enthusiasm for its new oral medication soquelitinib, which is expected to address a significant market need.
- Strong Market Demand: The global market for moderate-to-severe atopic dermatitis treatments is projected to exceed $24 billion by 2035, highlighting Corvus Pharmaceuticals' strategic positioning in this rapidly growing sector, especially as demand for non-steroidal therapies increases.
- Clinical Trial Success: Soquelitinib demonstrated positive effects in 75% of participants during early-stage clinical trials, showcasing its significant efficacy in a competitive dermatological treatment landscape, further solidifying Goldman Sachs' bullish outlook on the stock.
See More
ICAS Warns NI Cap Could Discourage Pension Saving
- Pension Saving Risks: ICAS warns that the Chancellor's cap on national insurance relief could discourage pension saving, particularly as some employers withdraw salary sacrifice schemes, indicating that short-sighted tax policies may exacerbate existing pension inadequacies.
- Employer Reactions: According to ICAS tax director Katie Close, the withdrawal of salary sacrifice schemes by employers is unsurprising, as the changes announced in the 2025 Budget will have long-lasting impacts on both individuals and businesses, potentially reducing pension provision.
- Low Pension Participation: ICAS cites research from the IFS and the Pensions Commission, revealing that over a fifth of private sector workers do not save into workplace pensions at all, and among those who do, around 30-40% are not on track for adequate retirement income, with policy changes risking further exacerbation of this issue.
- Policy Recommendations: ICAS urges the establishment of coherent, stable, and long-term pension rules to instill confidence in employers, savers, and the wider industry, ensuring that the core purpose of pension policy is to secure sufficient retirement income for individuals, thereby avoiding widening existing inequalities such as the gender pensions gap.
See More
