Analyst dims forecast for Goldman, Morgan Stanley
The investment banks had their third quarter earnings outlooks cut by Banc of America Securities analyst Michael Hecht.
In light of a challenging fixed-income sales and trading environment, New York-based investment banks Morgan Stanley and The Goldman Sachs Group Inc. had their third quarter earnings outlooks cut by Banc of America Securities LLC analyst Michael Hecht.
He cut his third-quarter earnings estimate on Goldman Sachs to $2.50 a share, from $3.98, and cut Morgan Stanley to 85 cents a share, from $1.02.
“We still believe Goldman and Morgan Stanley stand to benefit from stronger customer flow activity as other firms face more substantial de-leveraging pressures, but still not enough to offset recent cyclical and seasonal pressures across most capital markets businesses the last three months,” Mr. Hecht said in his note.
New York-based Banc of America Securities is the broker-dealer and wholly owned subsidiary of Charlotte, N.C-based Bank of America Corp.
Learn more about reprints and licensing for this article.