June 27, 2012 at 09:19 AM EDT
JMP Securities Urges Caution on Goldman Sachs, Morgan Stanley (GS, MS)

Financial services giants Goldman Sachs Group, Inc. (GS) and Morgan Stanley (MS) late Tuesday caught some continued bearish commentary from analysts at JMP Securities.

The firm maintained its “Market Underperform” ratings on both GS and MS, citing expectations for lower valuations across the U.S. banking sector. JMP set a $77 price target on GS (15% downside) and $11 on MS (19% downside).

JMP also reduced its earnings estimates for both companies, noting last week’s downgrades from Moody’s.

Goldman Sachs and Morgan Stanley shares were mostly flat in premarket trading Wednesday.

The Bottom Line
Shares of Goldman Sachs (GS) have a 2.02% dividend yield, based on last night’s closing stock price of $91.03. The stock has technical support in the $84-$87 price area. If the shares can firm up, we see overhead resistance around the $96-$100 price levels. Shares of Morgan Stanley (MS) have a 1.48% dividend yield, based on last night’s closing stock price of $13.51. The stock has technical support in the $12 price area. If the shares can firm up, we see overhead resistance around the $16 price level.

Goldman Sachs Group, Inc. (GS) and Morgan Stanley (MS) are both currently rated “Neutral” by Dividend.com.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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