Citi Thinks Goldman's Bummer Quarter Just Makes It Even Hotter Because Failure Is So Relatable

Yeah, Michael Corbat has a Lloyd Blankfein poster in his locker, so what?
Author:
Publish date:
Updated on

Ever had a crush on someone so attractive and so popular that they felt unattainable? Did that infatuation plunge you into an ennui every time you contemplated the odds of that special someone taking an interest in a schlub like you? Were you lucky enough to see the object of your puppy love do something embarrassing enough to make them seem suddenly human, fallible, and dare you even think it: relatable?

CorbatLoveLloyd

Well if you said "YES!" to all of this, then you know how Citi felt when going through Goldman Sachs' Q1 results yesterday. Because while everyone else was rending their garments over how Goldman could have missed (we see you DealBook), Citi was watching Goldman stumble and thinking "We know what that's like...we love Goldman more than ever right now."

Citi Research raised its rating for Goldman Sachs shares to neutral from sell, saying the bank's first-quarter poor trading results were likely an anomaly.

Ah, the old "Even Beautiful People Have A Bad Hair Day" theory of investing.

"While 1Q fixed income trading results were disappointing, we believe it would be a mistake for investors to extrapolate these results," analyst Keith Horowitz wrote in a note to clients Wednesday. "Goldman's relative valuation within the group is more appropriate now than it was when we believe investors were not appropriately discounting the inherent volatility in trading results."
Horowitz reaffirmed his Goldman price target of $225, representing 4 percent upside from Tuesday's close.

Buy Goldman now while it's sad enough to talk to you. Because you're going to to regret it when Goldman is back at the cool kid table and you're left with the dweebs, eating your soggy ham and cheese while Wells Fargo drones on about how bad things are at home lately.

Goldman upgraded by Citi after earnings miss; Mistake 'to extrapolate these results' [CNBC]

Related