Citi Upgrades GS to Neutral After 1Q Results Likely an Anomaly

Citi Research raised its rating for Goldman Sachs shares to neutral from sell, saying the bank’s first-quarter poor trading results were likely an anomaly.

Goldman’s stock traded down 5 percent Tuesday after the firm reported a weak March quarter. The bank missed Wall Street expectations on both sales and earnings. It surprised investors as the company has beaten profit estimates 90 percent of the time historically, according to Bespoke Investment Group.

“While 1Q fixed income trading results were disappointing, we believe it would be a mistake for investors to extrapolate these results,” analyst Keith Horowitz wrote in a note to clients Wednesday. “Goldman’s relative valuation within the group is more appropriate now than it was when we believe investors were not appropriately discounting the inherent volatility in trading results.”

Horowitz reaffirmed his Goldman price target of $225, representing 4 percent upside from Tuesday’s close.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza