The firm said it initiated coverage on the auction house based on a 25% increase in consolidated auction sales through May.
Goldman Sachs added that the company's valuation is at risk from global economic stability, expense leverage, China, and industry competition.
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Shares of Sotheby's are lower by -1.33% to $173.80 in pre-market trading today.
Separately, TheStreet Ratings team rates SOTHEBY'S as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SOTHEBY'S (BID) a HOLD. 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. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and notable return on equity. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."