Atlantic Equities Cuts Estimates on Morgan Stanley and Goldman Sachs; Leading the Banks to Trade Down

Atlantic Equities analyst Richard Statie reiterated an Underweight rating on Morgan Stanley

and a Neutral rating on Goldman Sachs

. In the report, second quarter EPS estimates were cut on Goldman by 16 percent to $2.70 versus the street estimates of $2.80, while cutting his estimates on Morgan Stanley by 18% to $0.42 versus the street estimates of $0.47. The drop in estimates was linked to a forecast of investment banking revenue declining by 5 percent, and a drop in trading revenues of 20 percent quarter over quarter. Following the report, Shares of Goldman Sachs traded down 1.01 percent to $151.52 while Morgan Stanley shares were down 0.44 percent to $24.35. The financial sector ETF

is currently trading up 0.81 percent to $19.28.