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All Going for Goldman: Dick Bove

CNBC.com
Tuesday, 14 Jul 2009 | 7:43 AM ET

Goldman Sachsthird quarter results are likely to be weaker compared with their expected bumper second-quarter profit, but things will pick up again for the investment bank in the fourth quarter, banking analyst Dick Bove told CNBC Tuesday.

Goldman makes most of its money in equity offerings and there have been many of those in May, Bove said.

He predicted that merger and acquisition activity, another strong point of Goldman's, will pick up in the last three months of the year.

Goldman Sachs
Goldman Sachs

On Monday, usually bearish banking analyst Meredith Whitney made a bullish call on Goldman Sachs.

Bove said the share price was likely to rise further.

"We put a buy recommendation on this thing in April when it was $115. A month and a half ago we raised that target to $200 (by next year)," he said.

The bank is still likely to take a hit on repaying the TARP, on its commercial property portfolio and on fair-value valuations, Bove added.

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