Goldman Sachs reduces price targets for 21 banks

15 August 2011

Goldman Sachs has reduced its price targets for 21 banks - including Citigroup and Bank of America.

Analysts at the lender pointed to a number of reasons for taking the action, The Street reports.

They noted concerns regarding the global economic outlook still persist, while nodding to the downgrade of the US's AAA rating by Standard and Poor's.

According to the officials, a low-growth environment will remain, with an extended low rate set to continue.

As part of the report, the authors explained that Bank of America, which was founded more than 200 years ago, has seen its price target fall by 23 per cent - dipping from $13 to $10, with 2012 estimates also being lowered by 17 per cent.

The analysts wrote: "The market remains concerned over its Basel III capital position ... which has been a major contributor to its stock falling over 25 per cent to $7 over the past two weeks."

By Claire Archer

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