Goldman Sachs’ Price Target Cut by Dick Bove (GS)

Financial services juggernaut Goldman Sachs Group, Inc. ( GS ) saw its price target cut on Monday by famous analyst Dick Bove of Rochdale Securities. Bove lowered his one-year price target for GS to $182 from $200. The new price target represents about a 27% upside from the stock’s Friday closing price of $142.25. The analyst maintained his “Buy” rating on the stock, noting that the price target cut had nothing to do with the recent SEC investigation into Goldman’s alleged fraudulent activities. Instead, Bove cited the overall “weak” business environment for the downgrade. Additionally, he lowered its full-year 2010 EPS estimate for the company from $18.72 to $17.17, which is well below the average Wall Street forecast of $19.54. Goldman Sachs shares were mostly flat in premarket trading Monday. The Bottom Line We had removed shares of GS from our recommended list back on Nov.17, when the stock was trading at $177.25. The company has a .98% dividend yield, based on Friday’s closing stock price of $142.25. The stock has near-term technical support in the $136-$137 price area. If the shares can stabilize, we see near-term overhead resistance up around the $150-$154 price levels. We would remain on the sidelines

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Goldman Sachs’ Price Target Cut by Dick Bove (GS)

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