Goldman Sachs Group Inc (GS) said that it forecast a 1% contraction in global real Gross Domestic Product this year, or a more considerable rate of decline compared to 2009.
Goldman Sachs shares closed lower for a second consecutive trading session in New York on Monday. The stock went down 2.49% ($3.44) to $134.97, after touching an intraday low at $133.39, or a price level not seen since March 19th ($130.97).
Shares of Goldman Sachs Group Inc have retreated 41.30% so far in 2020 compared with a 30.75% loss for the benchmark index, S&P 500 (SPX).
In 2019, Goldman Sachs Group’s stock went up 37.64%, thus, it outperformed the S&P 500, which registered a 28.88% gain.
The Wall Street bank expects a ”very sharp” contraction in the real GDP of advanced economies during the second quarter, with US GDP shrinking 24%.
“The coronacrisis — or more precisely, the response to that crisis — represents a physical (as opposed to financial) constraint on economic activity that is unprecedented in postwar history,” Goldman Sachs said in a client note, cited by Reuters.
Analyst stock price forecast and recommendation
According to CNN Money, the 22 analysts, offering 12-month forecasts regarding Goldman Sachs’s stock price, have a median target of $256.50, with a high estimate of $367.00 and a low estimate of $154.00. The median estimate represents a 90.04% upside compared to the closing price of $134.97 on March 23rd.
The same media also reported that at least 13 out of 25 surveyed investment analysts had rated Goldman Sachs’s stock as “Buy”, while 9 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.
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