Are Goldman Sachs & Morgan Stanley Worth 50% More? (GS, MS)

Banking, finance, and taxes

Published: May 12, 2009 12:21 pm

Last Updated: April 27, 2020 4:31 pm

Money Stack Image Research analysts often make timely calls, and sometimes they make rash calls. If Dick Bove of Rochdale is accurate, then both the Goldman Sachs Group Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS) could be worth almost 50% more than their current share prices.

Bove has lifted his prior $152 target on Goldman Sachs to a new level of $200 per share. Bove also lifted his prior $30 target on Morgan Stanley to $35. The mainstays on these are trading revenues and investment banking activities picking back up.

So far, the market isn’t biting as these financial stocks are giving back some of their elevated gains. Morgan Stanley is down 2% at $25.43 today, but it is up more than 200% from its climax-selling lows. Goldman Sachs is down 2% at $133.00, and that is actually up almost 200% from its climax-selling lows.

That represents a 50% upside for Goldman Sachs and an almost 40% upside on Morgan Stanley if Bove is right.

JON C. OGG

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