Nomura Securities Lifts Target on Goldman Sachs (GS) After Strong Q3
Nomura Securities boosted its price target on Goldman Sachs (NYSE: GS) frm $128 to $144 following Q3 results on Tuesday.
Analyst Glenn Schorr comments: "3Q12 results review. Reported $2.85 EPS included a negative $370M DVA (~$0.48/share). Ex- DVA, the "clean" EPS was ~$3.34/share, which handily beat our comparable $2.45/share estimate. ROE was a respectable 8.6% driven by a strong beat from the Investing & Lending segment (“I&L”), thanks to stronger equity and credit markets. The quarter showed good I-banking and in-line FICC, equities and investment mgmt results. With expected comp leverage in 4Q and hope for better capital markets and operating leverage over the next 6 months, we believe the stock can hang in there near term and push higher over the next two quarters. We think the stock is attractive at less than 1.0x TBV, given the potential operating leverage and capital build/return if markets improve over time and maintain our Buy rating."
4Q12E EPS from $3.95 to $4.04; FY12E EPS from $12.1 to $12.6; FY13E EPS from $13.14 to $13.35.
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 $123.22 yesterday, with a 52 week range of $86.90-$128.72.
Analyst Glenn Schorr comments: "3Q12 results review. Reported $2.85 EPS included a negative $370M DVA (~$0.48/share). Ex- DVA, the "clean" EPS was ~$3.34/share, which handily beat our comparable $2.45/share estimate. ROE was a respectable 8.6% driven by a strong beat from the Investing & Lending segment (“I&L”), thanks to stronger equity and credit markets. The quarter showed good I-banking and in-line FICC, equities and investment mgmt results. With expected comp leverage in 4Q and hope for better capital markets and operating leverage over the next 6 months, we believe the stock can hang in there near term and push higher over the next two quarters. We think the stock is attractive at less than 1.0x TBV, given the potential operating leverage and capital build/return if markets improve over time and maintain our Buy rating."
4Q12E EPS from $3.95 to $4.04; FY12E EPS from $12.1 to $12.6; FY13E EPS from $13.14 to $13.35.
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 $123.22 yesterday, with a 52 week range of $86.90-$128.72.