Goldman, Merrill, Citi Outlook Lowered

Friday, 29 Feb 2008 | 7:49 AM ET

Punk Ziegel lowered its earnings estimates for the first quarter and full year on several financial institutions in the US including Goldman Sachs, Merrill Lynch and Citigroup, to reflect higher loan losses underpinned by the weaker economy.

"Economic reports and management statements suggest that the economic environment has weakened in the past month. Therefore, the loan loss provisions for each of the companies has been dramatically increased to reflect the changing economic environment," analyst Richard Bove said in a note to clients.

Bank stocks declined sharply in 2007 and are being held in place by their dividends and the value of their franchises, Bove added.

Shares at Merrill were off 0.7 percent in premarket trading, while Citi fell 1 percent. Goldman shares were unchanged but are down nearly 30 percent off their 52-week high.

  Price   Change %Change


  • Discussing loan growth in financials and the drag of litigation on Bank of America's earnings, with Gerard Cassidy, RBC Capital Markets lead banking analyst.

  • Ken Moelis, Moelis & Company founder and CEO, discusses the public debut of his company on the NYSE and explains his boutique investment banking model. "Clients will want the flexibility of an independent, unconflicted advisor," Moelis says.

  • Discussing how to buy in volatile market conditions and the investment banking market, David Katz, Matrix Asset Advisors CIO, and Charles Bobrinskoy, Ariel Investments vice chairman & portfolio manager.