Analysts See Upside in Banks Despite Q2 Hit to Trading Profits (MS) (GS)
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Price: $25.19 +2.48%
Rating Summary:
5 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
5 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade MS Now!
Susquehanna analyst Doug Sipkin slashed second quarter and full-year EPS estimates on Morgan Stanley (NYSE: MS) and Goldman Sachs (MYSE: GS). In a report today, Sipkin predicted a "major" slowdown in banking and fixed income trading.
In response to worsening conditions, Susquehanna cut their price target on Morgan to $23 from $24. Sipkin also cut EPS estimates to 36c from 62c. Core trading at Morgan Stanley could take a hit of up to 45 percent quarter-over-quarter, and revenue could drop up to 10 percent over the same period, noted the report.
Goldman's price target was cut to $110 from $119, as second quarter EPS estimates were cut to $1.32 from $2.51. Trading revenue is expected to drop by up to 50 percent and revenue could be down as much as 25 percent, said Sipkin.
Given the low valuation, Susquehanna reiterated their positive rating on Morgan Stanley.
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In response to worsening conditions, Susquehanna cut their price target on Morgan to $23 from $24. Sipkin also cut EPS estimates to 36c from 62c. Core trading at Morgan Stanley could take a hit of up to 45 percent quarter-over-quarter, and revenue could drop up to 10 percent over the same period, noted the report.
Goldman's price target was cut to $110 from $119, as second quarter EPS estimates were cut to $1.32 from $2.51. Trading revenue is expected to drop by up to 50 percent and revenue could be down as much as 25 percent, said Sipkin.
Given the low valuation, Susquehanna reiterated their positive rating on Morgan Stanley.
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Analyst Comments, Analyst EPS Change, Analyst PT ChangeRelated Entities
Morgan Stanley, Susquehanna International Group of Companies
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