Dick Bove Believes Goldman Sachs has Bottomed (GS, C)

In a recent interview with Fox Business Network’s Nicole Petallides, Rochdale Securities analyst, Dick Bove, expressed his view that Goldman Sachs GS “has hit the bottom.” Conversely, he also said that the company has “a long haul to get earnings back to where they were.” Mr. Bove said, “The key concern is investment banking is doing very poorly, although they were in the China Ag deal. But the other problem is so many hedge funds have derisked and taken money off the table that it’s difficult to trade at the same level they were trading before.” Citigroup C remains his top pick in the space, though, saying, “The price is being held down by the government sales, but the company has turned around, the earnings power is there, the ability of this company to earn 70 cents at some point in the next 2-3 years is there.” “(This) means I think it will get to eight and a half dollars a share. It’s not going to be next week, but over the next 12-18 months you should expect to see it coming into that range,” said Bove. Shares of Goldman Sachs ended the session lower by 0.59%, at $137.25, but were higher in the after-hours. Shares of Citigroup ended the session higher by 1.73%, trading at $4.11; they were also higher by another 1.22% in the after-hours.