Credit Suisse Raises Price Targets On Goldman Sachs, Morgan Stanley

In a note released Friday morning, Credit Suisse analyst Christian Bolu raised his estimates and price targets for both Goldman Sachs GS and Morgan Stanley MS.

Goldman Sachs: Outperform

In the run-up to the end of the third quarter, Bolu has raised his price target for Goldman from $185 to $200, while raising his third quarter EPS estimate from $2.59 to $3.20. The increases were largely driven by better-than-expected trading and investing and lending.

Bolu is predicting a modest 3 percent decline in the firm's quarter-over-quarter FICC revenues, but said the environment for principal investing remains healthy. He highlighted Mobileye NV as a top investment for the quarter.

Morgan Stanley: Neutral

In contrast to Goldman, Bolu's upward revision to Morgan Stanley's price target (from $33 to $36) and third quarter EPS estimate (from $0.50 to $0.54) are due primarily to higher investment banking and lower non-compensation costs.

Looking at the firm's business segments, Bolu expects another quarter of "steady" franchise progress. However, he expects FICC to fall 16 percent quarter over quarter.

Amid the raised price targets, shares of both Goldman Sachs and Morgan Stanley were trading up about 2 percent.