Wells Fargo Downgrades Goldman Sachs (GS) to Market Perform On Global Growth Challenges
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Price: $1,039.42 -0.31%
Rating Summary:
16 Buy, 23 Hold, 2 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
16 Buy, 23 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo downgraded Goldman Sachs (NYSE: GS) from Outperform to Market Perform with a valuation range of $95-$105, saying global growth challenges offset historically attractive valuation.
The firm comments, "A deteriorating outlook for the global economy in 2012 is the primary reason for our downgrade of our GS recommendation. Over the past six months, shares of GS have been 77% correlated with the consensus 2012 Global GDP forecast (vs. 21% for the BKX and 29% for the S&P 500), which has declined by 33% to 2.3% from 3.4% (vs. the 29% decline in the GS share price). While we note GS shares outperformed UCMB peers in 2011 (with the exception of Outperform-rated JPM), we view the firm as vulnerable to a continued deterioration of in the global economic growth outlook and continued capital market dislocations, which may adversely impact the firm's revenue generation capabilities and return profile."
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 $94.58 yesterday.
The firm comments, "A deteriorating outlook for the global economy in 2012 is the primary reason for our downgrade of our GS recommendation. Over the past six months, shares of GS have been 77% correlated with the consensus 2012 Global GDP forecast (vs. 21% for the BKX and 29% for the S&P 500), which has declined by 33% to 2.3% from 3.4% (vs. the 29% decline in the GS share price). While we note GS shares outperformed UCMB peers in 2011 (with the exception of Outperform-rated JPM), we view the firm as vulnerable to a continued deterioration of in the global economic growth outlook and continued capital market dislocations, which may adversely impact the firm's revenue generation capabilities and return profile."
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 $94.58 yesterday.
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