Meredith Whitney cut earnings estimates for Goldman Sachs Group Inc. and Morgan Stanley through 2011.
She now projects Goldman Sachs will earn $19.57 a share in 2009, $19.65 in 2010 and $20.60 in 2011. Those were reduced from $19.95, $21.73 and $24.04, respectively.
Morgan Stanley’s projection for 2010 was cut to $2.60 a share from $2.63, while the 2011 forecast was reduced to $2.75 from $3.28.
Whitney has “neutral” ratings on both stocks.
The direction of the cuts is more important than the actual number she puts out. Clearly, she is seeing or hearing about performance deterioration.
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