Jan. 6 (Bloomberg) -- Goldman Sachs Group Inc. had its stock rating cut by analysts at Wells Fargo Securities, who cited weaker investment-banking conditions and lower trading activity.
Goldman Sachs was reduced to “market perform” from “outperform” by analysts led by Matthew H. Burnell at Wells Fargo, in a note to clients today. JPMorgan Chase & Co. and PNC Financial Services Group Inc. have “greater upside potential” than the New York-based bank, wrote Burnell.
“A deteriorating outlook for the global economy in 2012 is the primary reason for our downgrade of our Goldman Sachs recommendation,” the analysts said. “We view Goldman Sachs as vulnerable to a continued deterioration in the global economic outlook and capital market dislocations.”
JPMorgan Chase, however, will remain cushioned from the volatile markets due to its “superior capital flexibility, business mix diversity, and growth orientation amid broader industry retrenchment.” Wells Fargo has an “outperform” recommendation on JPMorgan.
--Editors: Jon Menon, Keith Campbell
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