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Deutsche Bank Sees Goldman Sachs (GS) Posting a Loss in Q3, Also Cuts Morgan Stanley (MS)

September 29, 2011 7:09 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
Deutsche Bank is the latest firm to lower estimates on Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS) in the wake of a weaker macro backdrop and lower capital market trends.

The firm cut Q3 EPS estimates on Goldman Sachs from a profit $0.50 to a loss of $0.25, which compares to the consensus of $1.35.

The firm cut Q3 EPS estimates on Morgan Stanley to $0.30 from $0.40, versus the consensus of $0.38.

"The broker stocks have been under pressure due to the Euro sovereign issue (systemic fears) & weaker macro backdrop, but given significantly lowered expectations & valuations below TBV, we view these as priced in, & once we get some clarity around the Euro issue, we see meaningful upside," the analyst comments.

Goldman Sachs reports earnings on October 18.


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