NEW YORK (TheStreet) -- Shares of Goldman Sachs Group (GS) were slipping, down 1.26% to $215.65 in early market trading Wednesday, after analysts at Deutsche Bank downgraded the company to "hold" from "buy" this morning, following its strong share performance.
Deutsche Bank cited a valuation call for the rating cut, and noted that Goldman stock has risen about 30% since July of last year.
Analysts set a $205 price target, saying they see a lack of catalysts to drive the stock higher in the near term.
Deutsche also downgraded shares of Citigroup (GS) this morning for the same reasons.
New York City-based 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, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- GS's revenue growth has slightly outpaced the industry average of 5.7%. Since the same quarter one year prior, revenues slightly increased by 8.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 47.76% and other important driving factors, this stock has surged by 26.33% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- GOLDMAN SACHS GROUP INC has improved earnings per share by 47.8% 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 $17.07 versus $15.47 in the prior year. This year, the market expects an improvement in earnings ($19.46 versus $17.07).
- 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 39.9% when compared to the same quarter one year prior, rising from $2,033.00 million to $2,844.00 million.
- You can view the full analysis from the report here: GS Ratings Report