Goldman Sachs Downgraded At Susquehanna As Oil Price Drop Hurts Loan Business

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Goldman Sachs's stock was downgraded on Wednesday to neutral from positive by Susquehanna analyst Doug Sipkin, who cited tougher credit market conditions and concerns that falling crude oil prices will could have a big impact on the broker's high yield and loan businesses. Sipkin also cut his stock price target to $200 from $218 and his full-year 2014 and 2015 earnings-per-share estimates to $17.50 and $16.82, respectively, from $17.97 and $17.83. "According to Thomson Reuters, energy has accounted for 22% of U.S. high-yield issuance and 16% of loan issuance through December," Sipkin wrote in a note to clients. "Given the 30% decline in oil prices since the end of 3Q14, we expect an incredibly difficult comparison in 2015." Goldman's stock slipped 0.7% in light, premarket trade. It has gained 11% this year, in line with the rise in the S&P 500.

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