Goldman Sachs' Stock Turns Lower; Analyst Sees Reason To Be Less Bullish

By Markets MarketWatch Pulse

Goldman Sachs Group Inc.'s stock slumped 1% in morning trade Tuesday, reversing sharp gains made before the open, as analysts and investors digested second-quarter results. Goldman reported earlier earnings and revenue that beat expectations, sending the stock up as much as 1.6% in premarket trade. Analyst Steven Chuback at Nomura said while the headline beats were "impressive," he said the "somewhat disappointing" results in its equities and investment management businesses may dampen the magnitude of the shares' performance relative to its peers. Meanwhile, Chuback reiterated his buy rating and stock price target of $195, which is 21% above current prices. Goldman reported equities revenue declined 12% to $1.75 billion, missing the FactSet consensus of $1.96 billion. The stock was still up 3% since the end of the first quarter, compared with a 4.6% gain in the SPDR Financial ETF and a 4.7% rally in the Dow Jones Industrial Average .

Continue Reading Below

Copyright © 2016 MarketWatch, Inc.