Goldman Sachs Group Inc. was upgraded on Monday at Oppenheimer & Co., which cited a below-average valuation despite above-average returns within the industry. Analyst Chris Kotowski raised his rating to outperform from perform, and assigned a stock price target of $236, which is 30% above Friday's closing price of $180.94. Kotowski said he was previously concerned about Goldman's reliance on fixed income, currency and commodities trading, which accounted for a quarter of total revenue in 2014. But Kotowski said he's changing his mind on FICC trading, as Goldman has consistently earned more than the industry average. He said it's encouraging that the share of less capital-intensive businesses has increased to 60% of Goldman's total revenue from 46% in 2010. The stock climbed 1.4% in premarket trade. It has dropped 15% over the past three months, while the SPDR Financial ETF has declined 8.4% and the Dow Jones Industrial Average has lost 9.1%.
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