Goldman shares recently traded at $205.37, up 1.77%, and have slumped 10% year to date. The stock has risen 10% since Sept. 23.
After earning the reputation as perhaps the strongest financial institution in the nation, Goldman has stumbled since the financial crisis of 2008. It has been done in by a difficult environment for banks and by its own missteps.
As for Goldman’s new partners, the number may slide below 60 this year from 84 in 2016, a source told Bloomberg.
Goldman plans to trim about 1% of its employees, or about 400 jobs, sources told Bloomberg last week.
Morningstar analyst Michael Wong has a positive view of Goldman Sachs beyond the immediate future.
“Given our forecast, we assess that Goldman Sachs should trade at or higher than book value,” he wrote in an August commentary.
“While the market is unlikely to give the company much credit for its new initiatives in the near term, we believe the company has already shown positive changes in its business mix and that the market will eventually value the company much higher than it had been over the previous several years.”
Wong likes Goldman Sachs’ investment management unit. “Investment management is a relatively stable, high-return-on-capital business that is well suited to the current regulatory environment,” he said.
Wong puts fair value at $239 for shares of Goldman Sachs.