“As we approach the end of the 3Q, we struggle to find any broker-dealer businesses reporting positively trending results,” said Barclays analysts regarding the sector.The analysts slashed Goldman Sachs‘ Q3 estimate of from a $2.40 per share profit to a $0.35 per share loss.
“The primary drivers of our downward revisions include principal markdowns, lower trading, weaker investment banking, and in the case of MS a much higher compensation ratio as the low revenue outcome presses against minimum fixed compensation. As we noted then, weak equity markets are GS’s primary “Achilles’ Heel”.“
However, Barclays adds that Goldman shares may be attractive for those with “very high degrees of patience and tolerance for what may be an even more difficult time to be a financial sector investor…”
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