A top Wall Street firm predicts Goldman Sachs’ trading woes will continue into next year.
UBS lowered its rating on the bank’s shares to neutral from buy, saying it will report earnings below consensus expectations in 2018.
“Shares seem to reflect a rebound in revs but we have limited confidence in that. We are downgrading GS shares … as the market seems to be pricing an inflection in their FICC [fixed income, currency and commodities] revenues despite the recent weakness, suggesting a recovery is needed to justify 2018 consensus,” analyst Brennan Hawken wrote in the note to clients Monday. “We believe there are better opportunities for investors (such as buy-rated Morgan Stanley).”