Citi Lifts Goldman Sachs’ Profit Estimates John Spence MarketWatch Pulse FOXBusiness.com
BOSTON — Citigroup analyst Keith Horowitz on Monday raised his 2009 and 2010 profit estimates for Goldman Sachs Group Inc. , pointing to positive fundamental drivers such as “above-average bid/ask spreads for fixed-income and foreign-exchange trading, rallies in risk-related assets that decrease the likelihood of mark-to-market losses, and improvements in debt and equity underwriting volumes.” The analyst said Goldman is “well-positioned” to meet regulatory requirements for paying back the funds it’s received from the government under the Troubled Asset Relief Program, and expects the company will repay its $10 billion in TARP capital sometime this quarter. “Given declining credit spreads, strong capital and liquidity position, and Goldman’s increasing ability to tap the wholesale funding markets, we raise our target price from $145 to $160, which assumes a slightly lower cost of equity, and takes into account our higher earnings estimates,” Horowitz wrote in a research note.
Citi Lifts Goldman Sachs’ Profit Estimates – FOXBusiness.com.
