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Ahead of Q2 Results, Meredith Whitney Slashes Estimates on Goldman (GS), Morgan Stanley (MS)

July 8, 2010 11:27 AM EDT
GS Hot Sheet
Rating Summary:
    6 Buy, 12 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Shares of Goldman Sachs (NYSE: GS) have begun a move lower on very heavy volume as we are hearing that controversial banking analyst Meredith Whitney has lowered her earnings estimates on the stock ahead of the company's quarterly results, expected out on Tuesday, July 20th.

Meredith now sees Goldman reporting Q2 EPS of $1.70, down from her previous estimate of $4.75 and compared to the current Street consensus estimate of $2.34. Q3 EPS estimate moves from $4.24 to $3.77, which compares to the Street estimate of $4.10. For FY10, Meredith is now expecting Goldman to report $15.70, down from $20 previously. The Street is looking for FY10 EPS of $16.76.

Whitney maintains a Hold rating on shares of Goldman.

Elsewhere among the big banks, the analyst also lowered estimates on Morgan Stanley (NYSE: MS). Whitney lowered her Q2 EPS estimate on MS from $0.68 to $0.40. The analyst consensus is currently calling for quarterly EPS of $0.50.

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