NEW YORK (AP) -- Goldman Sachs received an upgrade to "buy" from "hold" by S&P Capital IQ on Friday.
S&P Capital IQ's analyst Kenneth Leon said in a note the move came because they expect capital markets to improve through the rest of this year and 2013.
S&P Capital IQ cut its price target for New York-based Goldman to $115 from $130 and also trimmed its full-year earnings forecast by $1 to $11.50. At the same time, it lifted its earnings estimate for 2013 by a dime to $13.50.
Both estimates are well above Wall Street's average of $10.76 for this year and $12.56 for 2013, according to the data provider FactSet.
Goldman's traders bring in revenue through buying and selling bonds, commodities and stocks. Goldman's investment bankers lines up stock and bond sales for companies that need to raise money from investors. That business fares better when markets are rising.
In Friday afternoon trading, Goldman's stock rose 2 percent, or $1.86, to $95.35. Even with those gains, Goldman's stock still lagged behind the broader market. The Standard & Poor's 500 index was up 2.2 percent.
Goldman Sachs Group Inc. has traded as high as $139.25 and as low as $84.27 over the past year.