# Goldman Sachs Initiated at Buy and Morgan Stanley at Hold as Bank Coverage Resumes

- URL: https://stocks.freetheai.org/news/goldman-sachs-initiated-at-buy-and-morgan-stanley-at-hold-as-bank-coverage-b4fb73
- Published: 2026-10-08T14:13:22Z
- Category: analyst_ratings; sentiment: bullish; impact: medium
- Symbols: [NYSE:GS](https://stocks.freetheai.org/symbols/NYSE-GS), [NYSE:MS](https://stocks.freetheai.org/symbols/NYSE-MS), [NYSE:WFC](https://stocks.freetheai.org/symbols/NYSE-WFC), [NYSE:STT](https://stocks.freetheai.org/symbols/NYSE-STT), [NASDAQ:HBAN](https://stocks.freetheai.org/symbols/NASDAQ-HBAN), [NYSE:C](https://stocks.freetheai.org/symbols/NYSE-C)
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TD Cowen initiated coverage of Goldman Sachs Group, Inc. (NYSE:GS) with a buy rating and Morgan Stanley (NYSE:MS) with a hold rating as part of a broader resumption of coverage on 16 large-cap U.S. banks. Analyst R. Scott Siefers noted that while sector fundamentals are strong, stock valuations are elevated, making selective investing critical. Alongside Goldman Sachs, the firm's top picks in the sector include Huntington Bancshares Incorporated (NASDAQ:HBAN), State Street Corporation (NYSE:STT), and Wells Fargo & Company (NYSE:WFC).

Goldman Sachs is expected to benefit from a multi-year expansion in investment banking, particularly within mergers and acquisitions and equity capital markets. This growth, combined with progress in its asset and wealth management business, could help the firm close its valuation gap with Morgan Stanley over time. While Morgan Stanley possesses a highly balanced business model that provides durable earnings power, its current premium stock price justifies a hold rating.

Investors will be monitoring the persistence of Morgan Stanley's elevated market revenues in the coming quarters. For Goldman Sachs, key focus areas include its execution in asset and wealth management, alongside how it navigates the current investment banking downturn. Overall performance across the sector will depend on whether these institutions can maintain their strong financial foundations.

## Key points

- TD Cowen resumed coverage of 16 large-cap U.S. banks, initiating Goldman Sachs Group, Inc. (NYSE:GS) at buy and Morgan Stanley (NYSE:MS) at hold.
- Analyst R. Scott Siefers noted that while industry fundamentals are very strong, selective stock picking is critical due to high valuations.
- Goldman Sachs is expected to see multi-year growth in investment banking and asset management, helping close its valuation gap with peers.
- Other top picks in the sector include Huntington Bancshares Incorporated (NASDAQ:HBAN), State Street Corporation (NYSE:STT), and Wells Fargo & Company (NYSE:WFC).

## Questions and answers

### Why did Goldman Sachs receive a buy rating?

Goldman Sachs is expected to benefit from a multi-year growth path in investment banking, particularly in mergers and acquisitions and equity capital markets, alongside success in its asset and wealth management unit.

### Why did Morgan Stanley receive a hold rating?

Although Morgan Stanley has a uniquely balanced business model with durable earnings power, its premium stock valuation keeps analysts at a hold rating.

### Which other large-cap banks are rated as buy?

Other buy-rated banks in this coverage group include Citigroup, Wells Fargo, State Street, Citizens Financial Group, Fifth Third Bancorp, Huntington Bancshares, KeyCorp, and U.S. Bancorp.