Goldman shares rise on upbeat Barron's view
NEW YORK (AP) — Shares of Goldman Sachs Monday rose after an article posted on the website of Barron's magazine predicted that the investment bank's stock could climb at least 25 percent over the next year.
Goldman's stock has lost more than half its value since its 2007 high of $248, and its earnings and revenue have declined this year as stricter government regulation and shaky financial markets hurt the investment banking industry.
But in a weekend article, Barron's says that many are too pessimistic on the New York company, given that it is in better shape financially than it was five years ago and holds a leadership position in most of its areas of business.
Barron's said that Goldman Sachs Group Inc. came away from the 2008 financial crisis better than any of its rivals. Former competitors like Lehman Brothers went under because of the financial crisis, while many competitors have shifted their focus: Morgan Stanley is increasingly looking to wealth management, for example.
It's also maintained its dividend and cut costs through layoffs and other measures.
Shares of Goldman Sachs Group Inc. rose $3.18, or 2.8 percent, to close at $116.86. The stock has traded between $84.27 and $128.72 over the past 52 weeks, and has gained about 30 percent this year.