Recent outperformance of large-cap U.S. banks has reduced their return-to-risk ratio below 1.0x, leading Vining Sparks analyst Marty Mosby to downgrade shares of Goldman Sachs Group Inc. to "market perform" from "market outperform."

The group that includes Goldman Sachs has managed nearly 10 percentage points of gains in share price, and investors now believe the Federal Reserve can continue normalizing interest rates, Mosby said in an Oct. 5 research note to clients.

He held his price target for the bank at $250. His full-year EPS estimates were adjusted downward to $17.00 from $17.30 for 2017 and to $19.50 from $19.75 for 2018.