Vertical Research analyst Gordon Johnson said Goldman Sachs (GS) being confirmed as a financial advisor to Tesla's (TSLA) proposed go-private offer "does not mean anything" beyond the "superficial optics" of the carmaker being able to "use Goldman's prestigious name to lend credence to the deal." Goldman is "in it for M&A fees" and agreeing to be an advisor is "not based on any inherent understanding of Tesla's value proposition, nor is it based on Goldman's confidence in Tesla's legal situation with respect to its significant issues surrounding disclosures and SEC involvement," according to Johnson, who maintains a Sell rating on Tesla shares.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here

BMO Capital raised the firm's price target on Goldman Sachs to $360 from $349 and keeps a Market Perform rating on the shares. The analyst cites the company's Q1 earnings beat driven by its Global Banking & Markets segment, with higher-than-previously modeled revenues and lower tax expenses more than offsetting higher expected compensation costs. BMO Capital is also raising its FY24 EPS view by $37.17 from $32.49 and its FY25 view to $38.62 from $37.53 for Goldman Sachs. The firm adds however that the stock's valuation already incorporates the benefits of an anticipated capital markets recovery.

HSBC analyst Saul Martinez raised the firm's price target on Goldman Sachs to $470 from $460 and keeps a Buy rating on the shares. The analyst increased estimates following Goldman's "broad-based beat" in Q1. Though macro uncertainty remains, higher investment banking fees and "self-help" should contribute to ongoing return on tangible common equity improvements, the analyst tells investors in a research note. HSBC calls Goldman its preferred vehicle to invest in improved capital markets activity.

Notable profits for the buyer who lifted the $6.25 offer for 3,135 Tesla (TSLA) May-24 155 puts yesterday at 09:53ET when underlying shares were trading at $165.33. Shares closed at $161.48, and the puts at $7.84 for a mark-to-market profit of 25%, or $498K, on the $1959K outlay.

As previously reported, Argus upgraded Goldman Sachs to Buy from Hold with a $465 price target. The company's Q1 results demonstrated the considerable strengths of the Goldman franchise during an investment banking upturn, the analyst tells investors in a research note, stating that while the investment banking environment offered a few false rebounds in 2023, the current surge appears to have staying power as equity and debt underwriting showing sequential improvement. Goldman's recent exit from several consumer businesses, which produced significant losses for the firm, also removes a headline risk and allows its management to refocus on core strengths in capital markets, Argus added.

Tesla is focused on building a giant Texas datacenter for its robotaxi project, which is now a top priority, after postponing work on a cheaper vehicle, Electrek's Fred Lambert reports. The cheaper vehicle, codenamed NV9, sometimes referred to as Model 2, was expected to cost around $25,000, but Lambert writes that the program is "effectively scratched" right now as Tesla is putting all resources into its self-driving effort. Reference Link