Following Goldman Sachs' (NYSE: GS) "very weak" first quarter earnings report, outspoken banking analyst Dick Bove of Rafferty Capital said it's time for the investment banking giant to make some transformational changes to its business.

While the analyst finds no fault with Goldman’s business acumen, he notes revenues and earnings per share are down and the stock is selling at the average price of 2006.

"The world has changed and Goldman is on the wrong side of that change," Bove exclaims. "Thus, being the best is wonderful but it does not necessarily create wealth for shareholders. It raises the question as to whether this is another of the great American companies that have lost their way because they have been unwilling to consider transformational change."

He said the slow erosion in value must stop and management needs to think strategically and take bold moves to insert itself on the successful side of the change in the financial sector.

The analyst maintained a Hold rating on GS and lowered his price target to $166.00 (from $174.00)

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Shares of Goldman Sachs closed at $159.02 yesterday.