Goldman Sachs (GS) Stock Declining Today on Analyst Action

NEW YORK (TheStreet) -- Shares of Goldman Sachs Group (GS) are declining, lower by 1.15% to $194.62 in late morning trading Wednesday, after the global investment banking firm had its rating lowered to "neutral" from "positive" by analysts at Susquehanna today.

Susquehanna also cut its price target to $200 from $218, indicating a potential upside of 1.58% from the stock's previous close.

Analysts at Susquehanna cited valuation and the possibility of the fall in energy prices hurting banking action in 2015 for its downgrade and lowered price target.

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Goldman Sachs is an investment banking, securities and investment management firm that offers a range of financial services to a diversified client base including corporations, financial institutions, governments and high-net-worth individuals.

Separately, TheStreet Ratings team rates GOLDMAN SACHS GROUP INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate GOLDMAN SACHS GROUP INC (GS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, expanding profit margins, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 0.8%. Since the same quarter one year prior, revenues rose by 13.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • GOLDMAN SACHS GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GOLDMAN SACHS GROUP INC increased its bottom line by earning $15.47 versus $14.15 in the prior year. This year, the market expects an improvement in earnings ($17.41 versus $15.47).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Capital Markets industry average. The net income increased by 47.7% when compared to the same quarter one year prior, rising from $1,517.00 million to $2,241.00 million.
  • You can view the full analysis from the report here: GS Ratings Report

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