Mediobanca Securities Cutting Estimates On Goldman Sachs

Mediobanca Securities is out with a research report on Goldman Sachs GS after the bank reported earnings yesterday. It has a Underperform rating and a $129 price target on shares. In a note to clients, Mediobanca Securities writes, "Goldman Sachs announced net income for Q2 2011 of US$1,052m. This was 33% below consensus and 30% below our forecasts. The main drivers for these disappointing results were a fall in FICC trading revenues and revenues from principal activities (Investing & Lending) of 63% and 61% respectively compared to Q1. The bank underperformed its peers in FICC trading while the contribution of principal revenues fell from over 30% of the group total in 2010 and Q1 2011 to just 14% in Q2 2011." Shares of GS lost 84 cents yesterday to close at $128.49.