Instinet Downgrades Goldman Sachs (GS) to Neutral; Less Golden Under Trump 'Goldilocks'

November 29, 2016 8:45 AM EST
Get Alerts GS Hot Sheet
Price: $235.74 -3.5%

Rating Summary:
    19 Buy, 14 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 11
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Instinet (formerly Nomura) downgraded Goldman Sachs (NYSE: GS) from Buy to Neutral with a price target of $201.00, saying a Trump Goldilocks” Scenario Favors eBrokers / Smids vs. Universals.

Steven Chubak commented, "The postelection rally in financials has sparked significant client inbound, and, despite a flurry of sell-side downgrades, many believe that shares will continue to run, as the cumulative benefit from potential GOP policy changes / resulting macro effects are not fully baked in. To provide perspective, we analyze each potential earnings lever: lower tax rate; higher rates / steeper curve; accelerated capital return; and stronger loan growth / M&A / trading. Others have undertaken a similar exercise, but feedback suggests complexities surrounding tax, capital, and valuation implications, as well as “multiplier” benefits from a lower tax regime, are not fully appreciated. Our analysis highlights a number of attractive alpha / pair trade opportunities."

In Universals, the firm prefers BofA.

For an analyst ratings summary and ratings history on Goldman Sachs click here. For more ratings news on Goldman Sachs click here.

Shares of Goldman Sachs closed at $210.35 yesterday.

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