Goldman Sachs was upgraded to outperform from neutral by Credit Suisse during the trading day Tuesday after the New York-based bank reporting better-than-expected quarterly earnings.

"Upside was revenue, expense and tax rate driven; better yet for the forward look — time to start thinking about tomorrow — is the progress against the bank's previously articulated growth initiatives, the health of the banking pipeline and the realization of operating leverage," analyst Susan Katzke said in a note to clients Tuesday.

The analyst raised her 2018 and 2019 earnings per share estimates to $24.70 and $25.75, respectively, while keeping her 12-month price target of $280 unchanged. Katzke's price forecast represents 20 percent upside over the next year.

The daytime upgrade came just a few hours after Goldman Sachs reported that the bank's profit surged 40 percent to $2.57 billion in the second quarter, surpassing Street revenue expectations in every major business with the exception of trading. The company's earnings of $5.98 per share also beat the $4.66 also topped projections.

However, the shares fell on a disappointing rise in litigation and regulatory costs. The bank's stock rose off its lows as word of the call spread on Wall Street and were last trading down 0.7 percent.