New York (Reuters)-a big Wall Street analysts have cut profit forecast of the bank recently, especially Goldman sachs, unpredictable trading market and the weak m&a and underwriting profit potential damage of roll department.
Goldman sachs group, the average earnings expectations for the third quarter to $2.28 per share last month down 18%, according to townsend Reuters I/B/E/S. Bank of America's average expected 9%, the average forecast decline by Morgan Stanley 4% decline.
Goldman sachs down especially difficult, because it has a traditional investment banking business depends on the buying and selling of securities underwriting, like stocks and bonds, merger and give advice.
One of the biggest U.S. investment bank 45% of revenue from fixed income, currency and commodities trading a profitable business, on average, since 2006.
Trading is in the third quarter, especially difficult, because the customer even in the markets, low profits from trading activities of Treasury bonds and products, such as stock, to come. Analysts also warned that some Banks may have to take stock and bond, the value of the stock down sharply write-downs.
Last Sunday, citigroup analysts Keith horowitz cut its earnings in the third quarter of Goldman sachs estimates that only 10 cents, lower than previous estimates from $2.70, although 36 cents one-time items. Horowitz cut his Goldman sachs the future of the company, he was more extensive target price cuts, each big part of the bank.
Horowitz move below Oppenheimer analyst Chris Kotowski, change his suggestion, the Goldman sachs stock "performance", from "run win the" last Tuesday. He and nomura securities analyst Glenn Schorr cut Goldman sachs estimates that significantly.
The average for all year Goldman sachs expected in 2011 and 2012 were down by 8% and 3%, according to townsend Reuters I/B/E/S.
"Like Goldman sachs's agent, I just want to stay away from them, to now because I think as they are so bound," said Todd market Sullivan, a rand strategy in the west "lu partners value stock investors, Massachusetts, who management about $10 $in assets and has a bank of America, but not Goldman sachs.
Less room operation
Even though the terms, Goldman sachs may outside will open a disappointing quarter.
Because, Goldman sachs have lost value stocks and bonds, Goldman sachs investment and loan business, and may get hit. In the industrial and commercial bank (China) Co., LTD will hold the < 601398 > have SS. Fall by more than 15% so far this quarter, which may lead to the $475 WanYuanChong minus, according to citigroup horowitz.
Nomura securities from the overall investment and Schorr is expected to loan department's $70 billion revenue. Negative
Analysts also reduced its investment banking business income hypothesis, because the company has been hesitant to pull its initial public offering, bonds issued by high volatility, acquisitions and price weakness triggered.
Most analysts still generally optimistic about the Goldman sachs, although may soon be the sixth two consecutive quarters of weak profits and incomes. Covers the stock of 28 analysts, 18 suggest to buy more, and 6 recommends that customers have no the position of the added, only two Suggestions for sale.
But it may be risen much, even stock fans become more cautious. Goldman's goal median price is $155, from three months ago before a month of $170 and $198.
The new goal is still a big premium, Goldman sachs recent market value. Its shares fell 39%, this year, set Monday in an new 52-week low of $99.80. Trade discount tangible book value in August, reflecting investors believe that since, if not more trading activities, Goldman's huge trade business capital costs could cut into profits deeply.
Even so, Morgan Stanley, bank of America and citigroup shares of Goldman sachs released so far this year than fall more clearly. This is why some stock analysts about Goldman sachs enthusiasm. They think, further down the stock may have more potential rise.
"If a customer call, we asked if he/she should buy stocks, we suggest at least seven other name, we will be the first to recommend buying," said Kotowski Oppenheimer.




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