Goldman Sachs: A Banking Surprise on the Horizon?

Investment banks, including Goldman Sachs and Morgan Stanley, are being watched for potential positive earnings surprises, according to RBC Capital Markets analyst Gerard Cassidy. Cassidy suggests Goldman Sachs, a dominant player in multiple financial sectors, could outperform expectations in both its trading and investment banking operations.

Cassidy also identifies Morgan Stanley's role in servicing employee equity in pre-IPO companies as a potential growth driver. As these companies become public, the monetization of employee stock grants is expected to accelerate, directly benefiting Morgan Stanley's wealth management business. Investors will be keenly observing the outlook for advisory and equity capital markets pipelines in upcoming earnings calls.