Ladenburg Thalmann & Co. analyst Richard Bove yesterday downgraded Goldman Sachs Group Inc., Lehman Brothers Holdings Inc. and Merrill Lynch and Co. Inc. to “sell” from “neutral,” saying that the banks will be hurt by the economic downturn, according to a research note.
The firms are based in New York.
Mr. Bove also cut his 2008 outlook on each of the banks and on New York-based Morgan Stanley, though he kept his “neutral” rating on the firm’s shares.
Also, he predicted that bank stocks will decline this summer on weak earnings, a cloudy economic outlook and seasonal weakness.
“While I remain convinced that the stress on the financial sector has been alleviated, I am just as convinced that the pressure on the economy has not eased,” Mr. Bove wrote in a research note.
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