Mike Mayo Says Buy Goldman Sachs Now (GS)

Credit Agricole banking analyst Mike Mayo is advising investors to buy Goldman Sachs GS at current levels. He said that a settlement over fraud charges leveled by the SEC could come as early as next week. He said that once a bank law is passed, all directions point to a settlement by the end of the year and possibly by as early as next week when Goldman reports earnings. The new news is what appears to be the imminent passage of the law (we have a call on this at 3 PM today). If and when a settlement is reached, the pool of potential investors in Goldman stock will get expanded since many that we have spoken with are prohibited from owning Goldman stock when there is a threat of criminal action. We recommend Goldman stock, especially around this event-driven situation; we reiterate our BUY rating and $207 target price. During today's trading session, GS shares have risen 1.44% to $141.05. Year-to-date, the stock has fallen 16.5%.