Goldman Sachs' earnings to boom over the next two years under Trump, UBS predicts

Lloyd Blankfein, chairman and chief executive officer of Goldman Sachs Group Inc.
Michael Nagle | Bloomberg | Getty Images

The potential for Goldman Sachs to deliver better-than-expected earnings over the next two years should prompt investors to get behind the stock, according to analysts at UBS, who boosted their 12-month price forecast on the shares Friday.

"We believe we are entering a period where earnings power may inflect for bulge bracket investment banks due to lesser regulatory constraints," equity analyst Brennan Hawken wrote in a note to clients.

Other expected changes under President-elect Donald Trump, including lower corporate taxes, higher U.S. interest rates and increased fiscal spending, should generate a favorable business environment for financial institutions, especially Goldman Sachs, according to UBS.