Berenberg lowered its rating on Goldman Sachs to sell from hold, citing the bank's valuation and the likelihood earnings results will come in below expectations this year. Insider selling by executives at the firm is also a red flag, Berenberg said.
Goldman Sachs shares are up 38 percent since the Nov. 8 election through Thursday versus the 10.5 percent return. Bank stocks have outperformed in recent months as investors anticipated the benefits of President Donald Trump's economic agenda.
"Despite our view of GS as the premier risk manager among the investment banks and considering our views on the operating environment, we think the shares are significantly overvalued," analyst James Chappell wrote in a note to clients Thursday. "All the good news priced in and more. ... Alongside this, share sales by senior management have risen significantly."