Goldman Sachs has gone through a "lost decade" and needs to reconsider its strategy, one Wall Street analyst thinks.
"It is not difficult to understand what happened to Goldman Sachs in the past decade. The industry it services was dramatically restructured. The company was not," Dick Bove, vice president of equity research at Rafferty Capital Markets, wrote in a note to clients. "The company needs to rethink its strategy and consider transformational changes in every aspect of its operations."
Bove's report was titled "The Lost Decade," looking into the bank's struggle in a rapidly reforming financial services industry, in which he criticized Goldman Sachs' leadership and executive pay structure.
Bove's comments follow a first-quarter earnings report from Goldman that topped expectations, but missed on revenue as income from trading businesses plummeted.
The bank did not respond to a request for comment on Bove's report.