• KBW analyst says Goldman Sachs stock could climb to $429 a share.
• Jim Lebenthal agrees with the bullish call on CNBC Halftime Report.
• Shares of the Wall Street bank are currently down 25% year-to-date.

Goldman Sachs Group Inc (NYSE: GS) has been in a downtrend over the past two months but a KBW analyst says the next twelve months will likely look very different.

Goldman Sachs stock should be worth $429

On Friday, David Konrad recommended that investors buy Goldman Sachs stock as it has upside to $429 – close to a 45% upside from here.

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“GS” is currently trading just under its forward tangible book value, which, as per the analyst, makes this stock attractive in terms of valuation. He added:

A main driver of the stock will likely be the excess capital generated from harvesting on-balance sheet private equity assets while simultaneously growing its alternatives asset management business.

Improved capital allocation was among other reasons cited for the constructive view. Konrad does see “FICC” as a near-term catalyst for the stock as well.

Jim Lebenthal agrees with the bullish call

Goldman Sachs is expected to report its financial results for the third quarter on October 21^st. Consensus is for it to earn $7.53 a share versus the year-ago $14.93 a share.

Agreeing to the “outperform” rating on CNBC’s “Halftime Report”, Cerity Partners’ Jim Lebenthal (who owns the stock) said:

You’ve got a stock here with pretty sizable cash flow and earnings. They’ve dampened buyback since last Fed Stress Test, but they’ll be buying back shares this year and next. This is a high return on equity stock. It’s very easy to own it here.

The U.S. Fed has already signalled plans of raising rates to about 4.6% (link). That’s also a tailwind for the investment bank. Goldman Sachs stock is trading roughly 25% down for the year at the time of writing.

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