Goldman Sachs is one of the world's most successful investment banks offering thousands of different services to paying clients including brokerage and equity research.
As such a lot of investors pay attention to what its calls and on April 8 it made a slightly contrarian sell call on one of the S&P/ ASX200's (ASX: XJO) leading mining companies.
Currently the likes of BHP Billiton Limited (ASX: BHP), Rio Tinto Limited (ASX: RIO) and South32 Ltd (ASX: S32) are the flavour of the day with many sell side brokers as commodity prices rise.
However, last Monday Goldmans labelled South32 a 'sell' and warned: "We believe the March Q production reports will be weak for most of the Australian bulk miners mostly due to cyclone activity over the period."
It also retained just a 'neutral' rating on Rio, BHP, and Fortescue shares on the basis of a forecast average iron ore price per tonne of US$81 in 2019, before a reversion to a 'long run' average price of US$60 a tonne. If Goldmans is on the money now might be a good time for investors in the iron ore miners to consider how long the good times will last.
This morning South32 shares are changing hands for $3.70 well off a 52-week high of $4.28.
