At the end of first quarter, Steven Chubak, analyst at Nomura holdings, set his price target to $200 which was previously $206 while iterating a Buy rating on Goldman Sachs Grp (NYSE: GS). The analysis was made after successive comparison of GS 1Q16 estimates of $2.68 with that of $2.81 of Nomura securities. However, the estimate primarily remained in close proximity to $2.23 but lagged the peer group.
While the Investment Banking (IBD) revenues shellacked maintaining better DCM, the shortfall was majorly impelled by revenue due to the infirmity translating through Institutional Client Services (ICS), Investing & Lending (I&L), and Investment Mgmt. (IM) and the earnings miss led to the lowering of target price.
The earnings hit was crippled due to proper hold on the overheads while the regulatory costs hit the non comp aided but even in a substantial volatile and weak quarter, an outperformance was observed in the shares which is a sign of an encouraged marketing, depicting hopes for equilibrium in the upcoming months in IBD particularly. Even though GS lagged behind in trading results but is believed to wrestle well on its restoration in the stock market, where it maintains its imperative worth in the capital market.