Goldman Cuts Bank of America Price Target From $19 To $16 Even As It Continues Understating Putback Problems
Goldman's Richard Ramsden has released another report whose only purpose is to prove that the market is wrong and that banks are angles, that putbacks already priced in by the market for the TBTFs are far greater than even the worst downside case, that business models are "robust", that Basel concerns are overrated, and more such things which, of course, are a self referential plea not to sell Goldman.... Oh yes, and despite all this he cuts the price target for WFC, PNC and, oops, Bank of America, from $19 to $16/share. If Goldman cuts Price Targets when all it sees are pots of gold and unicorns, one dreads to think what may happen if the bank was actually concerned about the fraudclosure situation that according to some rumors has brutalized the banks' October (and now November) mortgage-related cashflow.
A summary of Goldman's revisions, which include the drop in the BAC PT from $19 to $16.
And some multiple tables:
Also, we just love the "special disclosure" in the Ramsden report:
A household member of one of the analysts on the coverage team is employed by Bank of America Corporation (BAC), and has received equity-based compensation in the form of Bank of America common stock. The analyst is deemed to be a beneficial owner of those shares.
Full report for those who are concerned that Paulson's BAC PT of $30 by the end of 2011 may just not be reached.