FBR Capital Boosts Target, Estimates for Goldman Sachs (GS)

Financial services giant Goldman Sachs Group, Inc. ( GS ) on Thursday saw its price target and earnings estimate raised by analysts at FBR Capital Markets. FBR Capital maintained its “Outperform” rating on GS while lifting its price target from $180 to $190. That new target implies a 14% upside to the stock’s Wednesday closing price of $166.49. An FBR analyst commented, “We are maintaining our rating on GS and revising our 2011 EPS estimate from $17.55 to $18 and our price target modestly higher to $190. While the quarter didn’t leave much to get excited about, we are encouraged that Goldman Sachs eked out a respectable 13% ROE in a period where client activity levels were depressed, where investment banking revenue hasn’t fully rebounded, and capital management was practically non-existent. To the extent that any or all of these issues improve through 2011, we believe Goldman is set to post ROEs that are more reflective of our $190 price target.” Goldman Sachs shares were mostly flat in premarket trading Thursday. The Bottom Line We have been recommending shares of Goldman Sachs ( GS ) since Dec.22, when the stock was trading at $168.23. The company has a .84% dividend yield, based on last night’s closing stock price of $166.49. Goldman Sachs Group, Inc. ( GS ) is

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FBR Capital Boosts Target, Estimates for Goldman Sachs (GS)

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