Goldman Sachs: Financial Winners and Losers

Goldman Sachs was among the winners of the financial sector Monday even after an analyst cut his earnings estimates for the bank.

Author:: Robert Holmes
Publish date:: Sep 28, 2009 4:21 PM EDT

(

Updated with final stock moves

NEW YORK (

TheStreet

) --

Goldman Sachs

(GS) - Get Report

was among the winners of the financial sector Monday even after an analyst cut his earnings estimates for the bank.

Rochdale Securities analyst Dick Bove on Saturday reduced his full-year earnings estimates for Goldman's 2009, 2010 and 2011 fiscal years, arguing that underwriting revenues are expected to decline, the prime brokerage market is somewhat less robust than it has been, and wide margins experienced in the rates and foreign exchange markets have declined and are not expected to improve.

Bove reduced his full-year 2009 estimate to $17.03 a share from $17.39. He also cut his 2010 earnings estimate for Goldman to $18.99 a share from $19.46, and lowered his 2011 target to $20 from $20.51.

Still, Bove said seasonally weaker earnings in the third quarter should not deter buyers of the firm's stock. Bove also maintained a buy rating on Goldman shares and a price target of $200.

"The outlook for the fourth quarter and 2010 is, however, quite positive," Bove wrote in the research note. "The pent-up demand for capital among firms across the spectrum and in Europe as well as America suggests that there will be a surge in equity offerings. The caveat, of course, is that the markets must stay strong."

In other

Goldman Sachs'

news, U.K. newspaper

The Financial Times

reported the bank plans to hire up to 200 employees across all regions in an effort to build its asset management business.

Goldman shares closed higher by $3, or 1.7%, at $182.50. Among related names,

Morgan Stanley

(MS) - Get Report

rose 2.3% to $31.25 and

JPMorgan Chase

(JPM) - Get Report

added 2.7% to close at $44.81.

Bank of America

(BAC) - Get Report

shares edged higher after a

Wall Street Journal

article said the bank has "suspended current commitments" to Acorn Housing, a group affiliated with the community-organizing group Acorn. The group has been in hot water after footage surfaced that showed Acorn employees offering advice on tax evasion and other illegal practices.

"Bank of America takes recent allegations made against Acorn and Acorn Housing Corporation employees very seriously," the bank said in a statement to the

Journal

. Shares of BofA finished with a gain of 62 cents, or 3.7%, to $17.22.

Other bank stocks also closed out the day higher.

Citigroup

climbed 4.3% to $4.57,

HSBC

(HBC)

rose 2% to $57.56, and

Wells Fargo

(WFC) - Get Report

tacked on 2.5% to close at $28.90.

Other financial stocks in the news lately were on the rise Monday.