UBS analyst Brennan Hawken on Monday downgraded Goldman Sachs Group Inc. to neutral from buy, noting that investors had priced in an "inflection" point in the bank's Fixed Income, Currencies and Commodities division that might not be forthcoming. "Recent weak results could rebound," Hawken wrote, but added that 2018 consensus estimates imply a rebound of about 25%. UBS raised its 2017 estimate to account for the Q2 earnings beat, but cut its 2018 estimate to $19.30 per share, below the FactSet consensus of $20.16. "Goldman continues to run a premium franchise but we have limited confidence in predicting when their trading revenues will recover," Hawken wrote. The stock is down 8.6% for the year to date, while the S&P 500 has gained 10.2%. The mean rating among analysts polled by FactSet is overweight.
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