Wall Street Analyst Loses Love for Goldman Sachs and Morgan Stanley Pre-Earnings

Ticonderoga cut its fourth quarter per-share earnings estimate on Goldman Sachs to 97 cents from $4.12, while the full-year number for 2012 falls all the way to $8.87 from $11.51. Ticonderoga predicts that revenue will be weak this year in Goldman’s fixed income, currency and commodities trading. Ticonderoga has placed the what amounts to a “hold” rating on Goldman shares.

Stock-research analysts also lower Morgan Stanley’s fourth-quarter earnings estimates to a loss of 59 cents a share, a big drop from estimates of a 40 cent-a-share profit. The shift was prompted by expectations of weaker revenue and higher accruals for employee compensation, along with the cost of Morgan Stanley’s recent $1.1 billion settlement with bond-insurer MBIA. Ticonderoga maintains a “buy” rating on Morgan Stanley shares, despite slashing the price target on Morgan Stanley to $19 from $22.

Here’s how the two stocks are reacting to the news:

The Goldman Sachs Group, Inc. (NYSE:GS): GS shares recently traded at $93.47, down $1.11, or 1.17%. They have traded in a 52-week range of $84.27 to $175.34. Volume today was 4,192,428 shares versus a 3-month average volume of 7,686,720 shares. The company’s trailing P/E is 14.22, while trailing earnings are $6.57 per share.

Morgan Stanley (NYSE:MS): MS shares recently traded at $16.11, down $0.17, or 1.04%. They have traded in a 52-week range of $11.58 to $31.04. Volume today was 13,440,816 shares versus a 3-month average volume of 33,739,200 shares. The company’s trailing P/E is 10.56, while trailing earnings are $1.53 per share.