Atlantic Equities cuts Goldman Sachs to neutral

(BestGrowthStock) – Atlantic Equities cut Goldman Sachs (GS.N: ) to “neutral” from “overweight,” saying subdued market volumes may cap the Wall Street bank’s profitability over the near term.

Atlantic Equities analyst Richard Staite also cut his fourth-quarter earnings estimates for Goldman and Morgan Stanley (MS.N: ) (Read more about the money market today. ) to reflect continued weakness in fixed income trading.

He cut his fourth-quarter earnings per share estimate on Goldman to $3.25 from $3.75 and lowered his estimate on Morgan Stanley to 32 cents from 52 cents.

However, he said both banks were expected to grow their investment banking fees due to a robust environment for mergers and acquisitions.

Shares of New York-based Goldman Sachs, which have risen 7 percent this month, were down about 1 percent at $164.31 in afternoon trade.

Shares of Morgan Stanley were down 1 percent at $25.99 Thursday on the New York Stock Exchange.

(Reporting by Jochelle Mendonca in Bangalore; Editing by Jarshad Kakkrakandy)

Atlantic Equities cuts Goldman Sachs to neutral