Dick Bove cut his estimates for Goldman Sachs yesterday, explaining that trading activity had dried up as the Greek debt crisis unfolded.
The Rochdale Securities Analyst told CNBC’s Fast Money last night that Goldman looked like it was going to have a very strong quarter until fears steming from Greece arose.
“All of a sudden, when the Greece situation developed toward the end of January … then basically, trading just dried up. Sector by sector you saw a significant decline in trading activity,” Bove said.
Bove cut his first quarter estimates on Goldman to $3.99 from $4.88. He maintains his buy rating at a $200 price target.
“For the year I’m at $18.04 now and that’s simply because I did not cut estimates for the second, third and fourth quarter and I didn’t cut the estimates for next year and the year after,” Bove said. “In terms of what a multiple should be on Goldman Sachs, you should at least expect a 10 multiple, which would be a price of somewhere around $180.”
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