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Goldman a $200 Stock, 'You Should Own It': Bove

Goldman Sachs' problems are over after Tuesday's marathon Senate hearings and the stock is likely to rise, Rochdale Securities banking analyst Richard Bove told CNBC Wednesday.

"I think the SEC suit will be thrown out of court, I think Goldman's reputation will improve," Bove said.

"I think it's a $200 stock. I think the company's earnings are very good, I think you should own it, I think it's a tremendous opportunity," he added.

Goldman officials said they have not seen customers leaving the company and at this point the bank's business is not diminishing as a result of the fraud accusation, Bove said.

He said he had told Goldman Sachs officials before the hearings that he hoped they would explain to Senators that financial firms did not create the crisis and that derivatives actually helped the economy.

"They could have explained what a synthetic (collateralized debt obligation) is …. The whole discussion was useless," he said, referring to the nearly 11-hour hearings.

Goldman Sachs Chief Executive Lloyd Blankfein, who denied the SEC's accusations of fraud, said near the end of Tuesday's hearings that the criticism his bank faced would lead to some analysis of what went wrong.

"Everything that's been the subject of criticism will be tightened up," Blankfein said.

Senators on both sides of the political spectrum bitterly criticized Goldman. Sen. Carl Levin, D- Mich., quoted Goldman e-mails involving the words "sh**ty deal."

"How much of that sh**ty deal did you sell to your clients?" Levin asked David Sparks, the former head of Goldman's mortgage department.

Bove said there was nothing to suggest Goldman did anything inappropriate in creating the collateralized debt obligation that is at the center of the SEC's fraud charge.

"The firestorm hitting Goldman just burned itself out yesterday," he said. "It appeared to me that Senators overplayed their hand. They came out firing."