Tuesday April 14, 07:41 PM
STOCKS NEWS US-Bove raises price target on Goldman Sachs
Stocks on the move Real-time Equity news
U.S. stock market report
1415 ET 14April2009-Bove raises price target on Goldman Sachs
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Rochdale Securities analyst Dick Bove on Tuesday raised his price target on
Goldman Sachs to $142 from $123, a day after the financial services
company reported first-quarter results that topped expectations.
Bove wrote that the outlook for Goldman 'has improved notably,' and said
that the main reason was an improvement in trading, 'which has always been
Goldman's most important business.'
Despite the strong quarterly results, Bove expressed some reservation about
Goldman's plan to sell $5 billion in new shares in a move to repay the TARP
funds it had received.
'Goldman clearly needed these funds last year because the firm was cash
flow negative and was in danger of failing,' Bove wrote. 'Giving them up so
quickly does not appear to be a wise idea unless the firm is convinced the
financial crisis is over. Paying back TARP funds to allow the firm to raise
salaries does
not seem to be a valid reason for diluting shareholders.'
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