UPDATE: Wachovia Downgrades Goldman Sachs (GS) to Market Perform
More News related to GS
- David Moenning's Daily State of the Markets: 9/3
- Credit Suisse Lowers Q3 EPS Estimates On Goldman Sachs (GS) Again
- Goldman Sachs Conference Call to Announce Third Quarter 2008 Results
- Unusual 11 Mid-Day Movers 8/29: BIOF, JMBA, BPOP, BBX Higher; FRE, DELL, FNM, LAVA Lower
- Popular (BPOP) to Sell Loan and Servicing Assets to Goldman Sachs (GS)
More News related to JEF
- Jefferies (JEF) Expands Operations in the UK
- Jefferies Significantly Enhances Global Equity Markets Capabilities
- Radware Executive to Speak at Jefferies 2nd Annual Technology Conference
- Banc of America Downgrades Jefferies (JEF) to Sell
- Asset Manager M&A to Remain Robust as Financial Conglomerates Retreat, According to Jefferies Putnam Lovell Report
More News related to MER
- Merrill Lynch Hires Dick Barrett and Mark Ellman to Strengthen Investment Banking Coverage of Financial Institutions
- David Moenning's Daily State of the Markets: 9/5
- Pre-Open Movers 9/5: SankDisk (SNDK) and UST (UST) Both Up on Takeover Reports; Nokia (NOK) Sinks On Lower Market Share View
- Merrill Lynch (MER) Sept volatility elevated at 74; MER downgraded to Sell at Goldman
- Goldman Sachs Downgrades Merrill Lynch (MER) To Sell, Adds To Sell List
More News related to Analyst Comments
- Photos from Nintendo's Mystery Case Files: MillionHeir Event at Nintendo World Store in New York are Available on Business Wire's Web Site and AP PhotoExpress
- A Thoughtful Boyfriend and a Good Son Appear on ``The Big Spin(R)'' Show
- Ronald J. Riley / InventorEd - Largest Website for Inventors Sued by Internet Lawfirm
- Reigning Champ is Ready for the Countdown to One and Previews Inaugural Charlotte Race
- PHOTO ADVISORY -- GeoEye-1 Satellite Launches Into Space From Vandenberg Air Force Base, California
UPDATE: This morning, Wachovia downgraded Goldman Sachs (NYSE: GS) from Outperform to Market Perform.
The firm said, "We upgraded GS on March 18 subsequent to BSC issues because we felt it would be a big beneficiary of the migration of prime brokerage balances. In addition, market share in investment banking would likely result. Both trends were evident in the better than expected Q2 result. However, in light of renewed economic fears, a likely slower pace of large capital raises, seasonally slower prime brokerage revenues, and a 1.9x valuation, we are downgrading shares to Market Perform. GS is the leader in the space, in our view, but is not immune to weaker markets and likely lackluster summer conditions."
Wachovia said there is no doubt GS is the top name in the space, but they see both banking and prime brokerage slowing as we enter slower months and "big ticket" capital raises slow and small ticket "regional like raises" increase.
Wachovia is leaving their Outperform ratings on Morgan Stanley (NYSE: MS) and Raymond James (NYSE: RJF).
Wachovia remains most cautious on Jefferies Group (NYSE: JEF) and Merrill Lynch (NYSE: MER).
Related Categories
Analyst CommentsDowngrades
Insiders' Blog
Stocks Mentioned
+2.34
-0.44Related Entities
Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
Downgrade of GS
Lou on Jun 27, 2008 06:55 AMCan this be regarded as anything more than a slap back? The reasons for a change do not appear to be substantialyg