Goldman shares rise after two analysts upgrade the stock, calling it cheap

David Solomon, Goldman Sachs
Adam Galica | CNBC

Shares of Goldman Sachs climbed on Thursday after two firms upgraded the bank's stock on the belief it is cheap and will benefit from a rebounding global economy.

Bank of America upgraded Goldman Sachs to buy from neutral on Thursday, while hiking its 12-month price target on the stock to $270 from $245. The new target would translated into a 14% gain for the stock, based on its Wednesday's close of $237.76.

"We see the more favorable macro backdrop benefitting the near term outlook, while the strategic repositioning has the potential to create benefits over the next 3+ years, though is not without risks," Bank of America's analyst Michael Carrier said in a note on Thursday.

Also upgrading the stock Thursday is The Buckingham Research Group. The brokerage firm upped its ratings on Goldman to buy from neutral, citing reduced macroeconomic risk and relative multiples. It also increased its price target to $290 from $219.

"Valuation and the stock seem 'washed out,'" Buckingham analyst James Mitchell said in a note on Thursday. "Any rebound in capital markets activity this year could drive material EPS revisions – which could mean a double-whammy of rising earnings and valuation multiple."