Meredith Whitney Whacks Shares Of Goldman Sachs

Meredith Whitney has dropped her only “BUY” recommendation.

Whitney, who correctly predicted in 2007 that Citigroup Inc. would cut its dividend, didn’t update her price estimate on the shares in a summary note distributed to investors today. Further details on the downgrade weren’t immediately available.

The New York-based analyst upgraded Goldman Sachs to “buy” on July 13, since when the stock has risen 34 per cent, compared with a 29 per cent increase for the Standard & Poor’s 500 Investment Banking & Brokerage Index. The founder of Meredith Whitney Advisory Group LLC said on Sept. 10 that Goldman Sachs “still has a lot of gas in its tank.”

Goldman Sachs shares dropped 0.9 per cent to $188.46 in German trading as of 10 a.m. in Frankfurt.

The bank’s earnings come out tomorrow thursday.

Read the whole thing >

Update: Via FT Alphaville, here’s the version of the note that was sent out to media, to which the always cheeky Alphavillers note: “This is how analyst Meredith Whitney treats the media — the industry that helped turn her into the renowned bankslayer she is today.”

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