Noted Rochdale Securities analyst Richard Bove cut his forecasts on shares of Morgan Stanley (NYSE: MS) and Goldman Sachs Group Inc. (NYSE: GS) on Friday citing a number of near-term risks.
Bove, who has previously expressed a bullish stance on Goldman Sachs’ stock, said that he expects “defaults and austerity measures in Europe” to hurt Goldman Sachs’ earnings and characterized the overall business environment as “weak.”
The analyst cut his price target on shares of Goldman Sachs to $182 from $200 and lowered his 2010 earnings per share estimate to $17.17 a share from $18.72.
Morgan Stanley (NYSE: MS)’s price target was cut to $35 from $41, reducing his 2010 earnings per share forecast to $2.95 from $3.37.
Bove cited poor equity market performance and high-yield markets that “have been cut back meaningfully,” as reasons for cutting his numbers for Morgan Stanley (NYSE: MS).
