UPDATE 1-RESEARCH ALERT-UBS cuts Goldman target, 2008 EPS view
(Changes source, adds analyst's comments and share movement)
Jan 30 (Reuters) - UBS lowered its 2008 earnings estimate for Goldman Sachs Group Inc (GS.N: Cotización), and cut its price target on the stock to $235 from $250, to reflect a tougher earnings environment and lower return on equity forecast.
"While volume and volatility sensitive businesses are doing well, many businesses are still frozen, investment banking is softening, and almost all equity market-sensitive businesses are under some pressure...," analyst Glenn Schorr wrote in a note to clients.
Schorr, however, maintained his "buy" recommendation on the stock, saying Goldman was best positioned among the brokers to take advantage of trading opportunities, build out its franchise as well as manage risk.
The analyst cut his 2008 first-quarter earnings view to $4 a share from $4.34 a share, and 2008 view to $19.50 a share from $20.50 a share.
Shares of the company were down $1.94 at $194.11 in early morning trade on the New York Stock Exchange. (Reporting by Tenzin Pema in Bangalore; Editing by Amitha Rajan)
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