Oppenheimer Analysts Slash Estimates For Goldman Sachs, Jefferies Amid Subdued M&A Activity

Oppenheimer analysts Chris Kotowski and Kevin Tripp provided expectations on financial stocks for this year.

The analysts write that, at the start of the year, they were optimistic about a significant rebound in M&A and financing activity.

The key factors for a bullish stance at that time included higher demand after relatively quiet M&A years in 2023 and 2024, tightened credit spreads, and peaking interest rates that were stable to lower.

Nevertheless, there has been no clear sign of an M&A rebound so far this year. Disclosed M&A activity is up just 2.4% year-to-date and equity capital markets (ECM) is up 2.7%, adds the analyst.

Also, the analysts ...