(GS) The Goldman Sachs Group – Bear of the Day

We are downgrading our recommendation on Goldman Sachs (GS) to Underperform from Neutral based on current general economic conditions and the company’s involvement in a number of lawsuits. Previous quarter earnings results deteriorated, owing to decreased revenue and poor performance at Institutional Client Services division, coupled with global macro-economic concerns.

Regulatory issues, including lawsuits filed against the company, might dent the company’s financials in the upcoming quarters. Our six-month price target of $88.00 equates to about 12.1x our earnings estimate for 2011. Combined with the $0.35 per share dividend, the price target implies an expected total negative return of 8.3% over that period, which is consistent with our Underperform recommendation.

The quantitative Zacks Rank for Goldman Sachs is currently #5 (Strong Sell), indicating significant downward pressure on the shares over the near term. The company reports quarterly earnings before the opening bell Tuesday.

GOLDMAN SACHS (GS): Free Stock Analysis Report

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.


Powered by Facebook Comments

Similar Posts: | | Diversified Investments | Financial

RSS feeds: Goldman Sachs Group | GS | Diversified Investments | Financial |

Other Posts by | RSS Feed for this author