Goldman Sachs stock surges toward a record, adds more than 60 points to the Dow’s price

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Shares of Goldman Sachs Group Inc. surged 3.2% toward a record high, in midday trading Tuesday, as upbeat analyst comments and rising Treasury yields provide support. The stock provided the biggest boost to the Dow Jones Industrial Average , which was virtually flat even as Goldman’s stock price gain of $9.28 added about 61 points to the Dow’s price. BofA Securities analyst Michael Carrier reiterated his buy rating on Goldman while raising his price target to $345 from $270, saying he sees “attractive upside ahead” as investment sentiment shifts toward value from growth, and amid an improving economic backdrop. JMP Securities analyst Devin Ryan boosted Goldman’s target to $320 from $285, saying he believes investors are valuing the bank on its legacy framework, despite “substantial structural shifts” to its capital/efficiency position over the past couple years and “tremendous” investments into new growth areas. Also providing a boost to Goldman’s stock, the yield on the 10-year Treasury note rose 3.8 basis points toward a 10-month high of 1.168%. Higher longer-term yields can help boost bank earnings, as they can increase the spread between what banks earn longer-term assets, such as loans, that are funded by shorter-term liabilities.
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