Bloomberg News reports that the scandal, centering on the firm’s raising money for a Malaysian state investment fund, has been weighing on Goldman’s stock price for months, they said. Shares are probably “fairly valued” now, given the continued overhang.
Since November, Goldman’s “underperformance represents about $12 billion of lost market cap, which we attribute largely to 1MDB concerns.” While many investors may view Goldman shares trading at tangible book multiple as a buying opportunity, “we view it as appropriate,” Horowitz and Shao said.
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