Sandler O'Neil's Harte Optimistic About Goldman Sachs (GS)

Sandler O'Neil & Partners Jeffery O'Neil discussed the potential for a Goldman Sachs (GS) rebound on CNBC's 'Power Lunch'.
By Giovanni Bruno ,

NEW YORK (TheStreet) --Goldman Sachs (GS) - Get Report  was ranked the worst performing stock in the Dow during the first half of the year, and Sandler O'Neil & Partners' Jeffery Harte discussed why investors should remain patient with the firm today on CNBC's "Power Lunch".

"I think what we're seeing here is as much a financials problem as a Goldman Sachs problem. I mean, three of the five worst performers in the Dow are financials. It's not so much a reflection on Goldman." Harte said.

Despite overreaction in the wake of the Brexit vote this should not be cause for concern: "We see the market do this a lot historically when things get a little volatile and activity levels slow down, it kind of implies that's the new steady state and that's where we're going to be," Hart said.

Citing the recession of 2008 and the subsequent rebound in 2009, Hart cautioned investors, "to look at the uncertainty we're facing today and that to say a year out Goldman's still going to be struggling is historically the wrong conclusion."

"Historically you've always done well buying Goldman south of book value," he said, pointing to the company's ability to weather their way through periods of uncertainty. "At 20% this is a good time to be stepping into an industry leader in a growth segment," Harte concluded.

Shares of Goldman are falling 2.62% to $144.28 this afternoon. 

Separately, TheStreet Ratings rates Goldman Sachs as a "Hold" with a ratings score of "C." The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 

Among the primary strengths of the company is its expanding profit margins over time. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: GS

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