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Deutsche Bank Lowers Estimates for Goldman Sachs & Morgan Stanley (GS, MS)

Analysts at Deutsche Bank on Thursday cut their earnings estimates for financial services giants Goldman Sachs Group, Inc. ( GS ) and Morgan Stanley ( MS ).

The firm said it now expects GS to report a third quarter loss of 25 cents per share, compared with a prior forecast for a 50 cent per-share profit.

Meanwhile, Deutsche Bank lowered its Q3 estimate for MS from 40 cents per share to 30 cents per share.

A Deutsche analyst commented, "The broker stocks have been under pressure due to the Euro sovereign issue (systemic fears) & weaker macro backdrop, but given significantly lowered expectations & valuations below TBV, we view these as priced in, & once we get some clarity around the Euro issue, we see meaningful upside."

Goldman Sachs shares rose $1.09, or +1.1%, in premarket trading Thursday, while Morgan Stanley shares gained 33 cents, or +2.3%.

The Bottom Line

Shares of Goldman Sachs ( GS ) have a 1.45% dividend yield, based on last night's closing stock price of $86.32. The stock has technical support in the $91-$92 price area. If the shares can firm up, we see overhead resistance around the $102-$107 price levels. Shares of Morgan Stanley ( MS ) have a 1.41% dividend yield, based on last night's closing stock price of $14.16. The stock has technical support in the $12 price area. If the shares can firm up, we see overhead resistance around the $16-$17 price levels.

Goldman Sachs Group, Inc. ( GS ) and Morgan Stanley ( MS ) are both rated "Neutral," holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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