Citi Analyst Says: Buy Goldman, Despite My Forecast of a Loss
A Citi (NYSE:C) banking analyst has a rating of Buy on shares of Goldman Sachs (NYSE:GS), despite forecasting that the bank will lose $0.65 per share in the third quarter. Barron’s quotes the analyst, Keith Horowitz:
Given broad weakness in equity markets, we now forecast a $2.1 billion loss in the investing & lending segment including $1 billion loss for ICBC, which fell 35% during the quarter. We also expect a $1.1 billion loss on Goldman’s approximately $16 billion equity principal investment portfolio given the 15% 3Q drop in the MSCI World Index and our best estimate of the partial flow through given 80% of the portfolio is private equity which will likely only partly trip re-valuation triggers.
Shares of Goldman Sachs recently traded at $95, down $1.06, or 1.1%, on the day. The shares have traded in a 52-week range of $84.27 to $175.34 and its market capitalization is $48.05 billion. About the company: The Goldman Sachs Group, Inc., a bank holding company, is a global investment banking and securities firm specializing in investment banking, trading and principal investments, asset management and securities services. The Company provides services to corporations, financial institutions, governments, and high-net worth individuals.
Competitors to Watch: Morgan Stanley (NYSE:MS), JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC), Citigroup Inc. (NYSE:C), UBS AG (NYSE:UBS), Deutsche Bank AG (NYSE:DB), Wells Fargo & Company (NYSE:WFC), Credit Suisse Group AG (NYSE:CS), and Piper Jaffray Companies (NYSE:PJC).
(Note: Selected financial data are sourced from Google Finance. All data are assumed to be accurate.)