Goldman Sachs and Roche face key market developments

Goldman Sachs is preparing to release quarterly results, with market focus centered on its trading division. Analysts are looking for strong bond trading revenue to offset a potential slowdown in deal-making. The bank has recently seen record activity, including advising on the SpaceX IPO and managing over $1 trillion in M&A deals within a six-month period. Amidst recent stock price pressure, internal speculation regarding CEO David Solomon’s eventual successor has emerged, with COO John Waldron frequently mentioned, though the bank describes such discussions as speculation.

In the pharmaceutical sector, Roche is seeing gains following positive clinical data. The US FDA approved the drug Tecentriq combined with chemotherapy for specific types of colorectal cancer. Additionally, Roche’s partner, Zealand Pharma, reported positive Phase-2 results for Petrelintide, an obesity treatment. Analysts suggest Petrelintide could be a significant component of Roche’s obesity franchise, potentially offering a different mechanism of action compared to existing GLP-1 treatments.

Sandoz, a generics manufacturer, is also under analyst scrutiny. Goldman Sachs recently raised its price target for Sandoz to 85 CHF from 80 CHF, maintaining a ‘Buy’ rating. The company is expected to see currency-adjusted revenue growth of 6.1% in the third quarter, driven by a projected 20.6% increase in biosimilar sales.