Goldman Sachs Stock Price has seen some drop today. Analyst Dick Bove says troubles are coming for Goldman Sachs. The CNN Money forecast shows a median estimate of a +14.90% increase for 12-month price forecast. Goldman Sachs itself warns investors for the 2019 Stock Market in general being not bullish, says: Raise cash, get defensive and look out below if more tariffs happen.
Dick Bove Starts Goldman Sachs (GS) at Sell; ‘Not Time to Own Stock’
CNBC reported taht Bank analyst Dick Bove says sell Goldman Sachs: ‘Legal issues are just beginning’ Longtime financials analyst Dick Bove initiates coverage on Goldman Sachs with a sell rating and warns clients the bank’s legal troubles are just beginning. “I think that the most negative revelations are yet to come,” Bove wrote. “Thus, the broader issue is will Goldman’s business operations be impacted?” The bank said earlier this year that it could withhold pay from top executives depending on the outcome of an investigation into a Malaysian investment fund.
Longtime bank analyst Dick Bove warned clients Thursday that Goldman Sachs’s recent troubles in Malaysia are “just the beginning” of its legal woes.
The closely followed Bove, who joined broker-dealer Odeon earlier this year, initiated coverage of Goldman Sachs with a sell rating.
“It is unclear to us whether Goldman Sachs participated in any inappropriate activities,” Bove wrote. “What does seem likely is that Goldman’s due diligence efforts will be criticized. If true, this will lead to meaningful changes in company operations and personnel. The company has already decided to withhold payments to some of its top executives due to this matter.”
The bank said earlier this year that it could withhold pay from former CEO and Chairman Lloyd Blankfein and other top executives depending on the outcome of an investigation into a Malaysian investment fund called 1MDB.
Goldman helped the fund raise $6.5 billion in 2012 and 2013 in three bond deals, but now faces charges by the Malaysian government, which claims assets were plundered from the fund. Goldman Sachs claims it was the victim of deceptive Malaysian officials and the rogue actions of a former banker at the firm.
“I think that the most negative revelations are yet to come,” Bove continued. “Thus, the broader issue is will Goldman’s business operations be impacted? The company has been involved in questionable operations in Venezuela, also.”
GS Stock Price Forecast
CNN Money Report: The 24 analysts offering 12-month price forecasts for Goldman Sachs Group Inc have a median target of 226.00, with a high estimate of 302.00 and a low estimate of 190.00. The median estimate represents a +14.90% increase from the last price of 196.70.
2019 Stock Market Forecast:
Goldman Sachs on 2019: Raise cash, get defensive and look out below if more tariffs happen
Goldman Sachs is not feeling very bullish about stocks in 2019.
It says the S&P 500 will rise just 5 percent to 3,000 by year-end 2019 (after closing 2018 at 2,850).
Its base forecast: Stocks return 7 percent, T-bills return 3 percent and Treasurys return 1 percent in 2019.
But it says the market could be in for big trouble from tariffs.
Goldman Sachs is not feeling very bullish about stocks in 2019, according to its official outlook report to clients out this week.
Here are some of the investment bank’s predictions for next year:
The S&P 500 will rise just 5 percent to 3,000 by year-end 2019 (after closing 2018 at 2,850).
Households, mutual funds and pension funds should raise cash: “Cash will represent a competitive asset class to stocks for the first time in many years.”
Investors should buy defensive sectors and stocks to ride out a tough year where fears of a recession increase. Goldman raised utilities sector to “overweight” in the report.
Base forecast: Stocks return 7 percent, T-bills return 3 percent and Treasurys return 1 percent in 2019.
But the market could be in for big trouble from tariffs: “If the full 25 percent tariffs are levied on all imports from China the earnings impact could be significant, potentially eliminating any profit growth next year,” the report said.
Trade of the Day: Goldman Sachs Stock Is In Rally Posture
GS stock has a well-defined next upside price target
The financial sector of the S&P 500 has risen sharply along with the broader stock market over the past two months. While I have my concerns on this sector through a multimonth lens, in the near term, stocks such as Goldman Sachs (NYSE:GS) are eyeing a well-defined next upside target. Specifically for GS stock, it is the 200-day simple moving average that looms large.
InvestorPlace reports, Markets are complex mechanisms for the most part, and while I preach keeping it as simple as possible, I often see that many retail investors and traders only gaze a a few moving averages and then, based on that, put on their trades. In instances such as the one I am about to discuss here, however, it can make sense to use a specific price target or a moving average as a simple price attraction level.