UPDATE: ISI Downgrades Goldman Sachs to Hold

ISI is out with its report today on Goldman Sachs GS, downgrading GS to Hold from Buy. In its report, ISI writes, "We are downgrading GS to Hold from Buy. We recognize that 0.96x TBV is an inexpensive valuation for a downgrade, and we admit that we simply got this call wrong as we kept expecting trading and I-banking revenue to rebound (especially relative to Goldman's stock price). However, we now expect very weak EPS in the second half of this year (especially in 3Q), and we also think Goldman's EPS will come in well below Consensus estimates in both 2012 and 2013. Thus, we don't foresee a catalyst to drive GS materially above 1.0x TBV, and we're no longer recommending the stock on a risk vs. reward basis." ISI has a $135 PT on GS. At the time of posting, shares of GS were trading pre-market at $115.57, down 0.56% from Wednesday's close.