Key facts
- Oppenheimer downgraded Goldman Sachs and Morgan Stanley.
- Goldman Sachs and Morgan Stanley received an "underperform" rating.
- Oppenheimer cited limited upside potential for these banks.
- Oppenheimer advises selling shares of large-cap investment banks.
- Oppenheimer favors alternative asset managers.
- Ares Management, Blackstone, and KKR were named as favored alternative asset managers.
- Shares of alternative asset managers have recently declined.
Oppenheimer has issued a downgrade for two prominent U.S. investment banks, Goldman Sachs and Morgan Stanley, assigning them an "underperform" rating. The brokerage firm's analysis suggests that despite a generally positive market environment, the upside potential for these large-cap investment banks is limited. Consequently, Oppenheimer is advising investors to divest from shares of major investment banks.