A report that 15% of Goldman Sachs Group Inc.'s top executives will leave this year is "a sign of the challenges in the organization," Odeon Capital Group analyst Dick Bove said as he downgraded the investment bank.
Those challenges resulted from the company failing to evolve with digitization that has changed its core businesses, the analyst wrote. Its revenue has declined over the past 10 years and remained steady over the past five years as a result, according to Bove.
The company recognizes the changes it needs to make to catch up, but Bove wrote that the task is "sizable" and will take more time.
He lowered Goldman Sachs' rating to "hold" from "buy." His EPS estimates are $22.67 for 2019 and $24.96 for 2020.
