Goldman Sachs' (NYSE:GS) ROE Bright Spot in Dismal Quarter

There wasn't much to get you excited with Goldman Sachs (NYSE:GS) latest quarterly performance, but a bright spot, according to FBR, was their ROE, which they see as improving going forward.

FBR says, "We are maintaining our rating on GS and revising our 2011 EPS estimate from $17.55 to $18 and our price target modestly higher to $190. While the quarter didn't leave much to get excited about, we are encouraged that Goldman Sachs eked out a respectable 13% ROE in a period where client activity levels were depressed, where investment banking revenue hasn't fully rebounded, and capital management was practically non-existent. To the extent that any or all of these issues improve through 2011, we believe Goldman is set to post ROEs that are more reflective of our $190 price target."

FBR Capital reiterates an "Outperform" rating on Goldman Sachs (GS), which was trading at $165.44, down $1.05, or 0.63 percent, as of 12:19 PM EST. FBR raised their price target on Goldman Sachs from $180 to $190.