Dick Bove Just Upgraded Goldman Sachs for This Reason

According to Dick Bove, a five-decade Wall Street analyst, Goldman Sachs is ‘crushing it.’

Bove has upgraded the investment bank from “hold” to “buy” and cites the company’s dominant presence in corporate dealmaking.

“This is a new financial industry and this is a new Goldman Sachs,” Bove wrote. “In essence, as they say, Goldman is ‘crushing it.’”

The upgrade has irony as Bove has been one of the longest and most vocal critics of Goldman Sachs.

Bove, who is now with Odeon Capital Group, cited data showing that Goldman ranks No. 1 in U.S. equity offerings and has completed $12.1 billion in deals year to date. This is 14.3% market share, 43.3% above the No. 2 competitor.

“This is a new financial industry and this is a new Goldman Sachs,” Bove wrote. “The core reason to buy the stock is not so much what might be a great second quarter. It is that the company is being repositioned to fit its products into the newly formed markets driven by technology.”

“In essence, as they say, Goldman is ‘crushing it,’” he added.

“If anyone had predicted it, s/he certainly would never have estimated that a company like Goldman Sachs would struggle to simply maintain its revenues and earnings in this environment,” Bove added.

Disclaimer: We have no position in Goldman Sachs Group Inc. (NYSE: GS) and have not been compensated for this article.