Nomura Securities Reiterates a 'Buy' on Goldman Sachs (GS); Macro Concerns, But Stock Attractive
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Price: $158.90 --0%
Rating Summary:
7 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 6
Rating Summary:
7 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 6
Trade GS Now!
Nomura Securities reiterates a 'Buy' on Goldman Sachs (NYSE: GS) price target of $125.00.
Analyst, Glenn Schorr, said, "GS Reported EPS of $1.78 vs. Our/Street Estimates of $1.25/$1.17; better-than-expected results due to slightly better revenues vs. low expectations, combined with a steady comp ratio and decent non-comp trends. FICC revenue of ~$2.2B was up 41% y/y but down 39% q/q due to client risk aversion and lower volumes. GS continued to show solid expense control in 2Q12, with a steady comp ratio of 44% and non-comp expense down 7% y/y. We understand that investors remain concerned about the macro outlook and regulatory uncertainty, but we think the stock is attractive at less than 0.8x TBV, given the potential operating leverage and capital build/return. No rush given the environment, but we reiterate our Buy rating."
Updated Estimates: 3Q12E EPS from $2.29 to $2.17; 4Q12E EPS from $3.08 to $4.13; F12E EPS from $10.55 to $12.00; 1Q13E EPS from $3.01 to $3.03; 2Q13E EPS at $3.14; 3Q13E EPS from $3.11 to $3.15; 4Q13E EPS from $3.74 to $3.78; F13E EPS from $13.00 to $13.10.
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 $97.98 yesterday, with a 52 week range of $84.27-$139.25.
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Analyst, Glenn Schorr, said, "GS Reported EPS of $1.78 vs. Our/Street Estimates of $1.25/$1.17; better-than-expected results due to slightly better revenues vs. low expectations, combined with a steady comp ratio and decent non-comp trends. FICC revenue of ~$2.2B was up 41% y/y but down 39% q/q due to client risk aversion and lower volumes. GS continued to show solid expense control in 2Q12, with a steady comp ratio of 44% and non-comp expense down 7% y/y. We understand that investors remain concerned about the macro outlook and regulatory uncertainty, but we think the stock is attractive at less than 0.8x TBV, given the potential operating leverage and capital build/return. No rush given the environment, but we reiterate our Buy rating."
Updated Estimates: 3Q12E EPS from $2.29 to $2.17; 4Q12E EPS from $3.08 to $4.13; F12E EPS from $10.55 to $12.00; 1Q13E EPS from $3.01 to $3.03; 2Q13E EPS at $3.14; 3Q13E EPS from $3.11 to $3.15; 4Q13E EPS from $3.74 to $3.78; F13E EPS from $13.00 to $13.10.
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 $97.98 yesterday, with a 52 week range of $84.27-$139.25.
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