Goldman Sachs Downgraded At KBW

In a report published Friday, Keefe, Bruyette & Woods analysts downgraded the rating on

from Market Perform to Outperform, while raising the price target from $195 to $210. The reason for the downgrade, which came in the wake of robust 1Q05 results, was cited as the stock's valuation being full. Goldman Sachs posted its first quarter results significantly ahead of the consensus and KBW's estimates. The EPS estimates for 2015 and 2016 have been raised from $16.95 to $18.90 and from $18.50 to $19.25, respectively. The upward revision mostly reflects higher trading revenues, with growth estimates being off a higher base following the recently reported results. "The strength in results this quarter helped push our estimates higher, but we do not believe this level of volatility and trading activity is sustainable," the analysts pointed out. The company's share price surged after the results were reported. "We do not believe that a larger premium to forward book value is warranted at this time since the volatility of Goldman's earnings is still high and visibility into forward earnings low," the analysts explained. The company's share price already reflects the modestly improved estimates, and the analysts see limited "potential upside at the current trading price."