According to Barclays Capital (BarCap), EPS for the financial services provider now stands at $1.95 - lower than the $5.35 previously estimated.
The price target on stock held by Goldman Sachs was also cut from $195 to $175 by the financial commentator.
Roger Freeman, analyst at the financial institution, was quoted by the Wall Street Journal as saying: âFinancial market conditions have
deteriorated notably since 1Q10, evidenced by sharply wider credit spreads, cash-derivative basis, declines in structured finance indices, sharply higher volatility and a 'flight-to-safety' trade in less risky assets.â
âThis market dislocation, while certainly smaller than the dislocations seen in 2008 and early 2009, has impacted broker-dealer revenue generation in terms of client activity levels, trading revenue and investment banking results.â
Meanwhile, a judge in New York has agreed to provide Goldman Sachs with an extension to allow it more time to formulate a response to allegations of misleading investors.
Earlier in the year the Securities and Exchange Commission filed a lawsuit against the bank claiming it failed to provide investors with full details of securities linked to subprime mortgages in the US.
By Jim Ottewill