A Goldman Bear Turns Bullish: 'The Right Place, Right Time'

Notable bank analyst Dick Bove said in a downgrade report in early November that Goldman Sachs Group Inc GS is a "troubled" Wall Street bank. But on the final trading session of 2017, Bove turned bullish on the stock he'd downgraded a few weeks prior.

The Analyst

Dick Bove of Vertical Group told CNBC now is "the time to buy" Goldman Sachs' stock.

The Thesis

The case for buying Goldman Sachs' stock is simple, Bove told CNBC last week in an interview. (See Bove's track record here.) 

The Wall Street giant is poised to take full advantage of the "exact right environment for Goldman Sachs to do its very best," Bove said.

A "surge" of issues are being offered on the equity side, Bove said. 

"We are seeing a surge in the M&A business. We are actually going to get some commodity prices going up."

Goldman Sachs is the clear leader in banks offering M&A services and is No. 1 in the equity issuance market, Bove said. The bank is operating in an environment where anything that "could go right has gone right," and this is exactly the kind of environment the company has been preparing for over the past 10 years, the analyst said. 

Despite a now-favorable view of Goldman Sachs, the bank analyst is still negative on CEO Lloyd Blankfein. Bove said he still believes that the executive needs to be "bounced," but this in no way takes away from the fact that now is the "right place, right time for Goldman Sachs to show huge increases in earnings."

Price Action

Shares of Goldman Sachs closed Tuesday up 0.27 percent at $255.67. 

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