UPDATE: ISI Group Lowers PT on Goldman Sachs to $120

ISI Group has issued another research report on Goldman Sachs

and has lowered the price target from $134 to $120. In the report, ISI Group writes about its price target change, "[W]e are now forecasting an ROTCE of only about 10% in 2012-13, and that may prove optimistic. Accordingly, we are cutting our EPS estimates to $12.50 in 2012 and $13.75 in 2013. These estimates are now 10% and 12% below Consensus levels and both imply an ROTCE of about 10% (they also include enough buybacks to reduce common shares outstanding by 4% per year). We are also optimistically assuming that GS can improve its annualized core revenue run-rate (outlined above) by 10% from $31.9bn YTD 2011 to $35.0bn in 2012 and reduce its incentive comp ratio from 44% to 42%. Therefore, we maintain our Hold opinion on GS, and we are reducing our one-year price target to $120, which equals 9-10x our 2012 EPS estimate of $12.50 and 0.9x our year-end 2012 tangible book value per share estimate of $134." ISI Group maintains its Hold rating on Goldman Sachs, which is currently trading up $2.88 from yesterday's $96.90 closing price.