Posts for Ticker ‘Conviction Buy List’

Goldman Sachs Conviction Buy List Changes (CI, WLP, CNH)

Goldman Sachs is making a change to its CONVICTION BUY LIST this morning.  The firm is adding CIGNA (NYSE: CI) and dropping WellPoint (NYSE: NYSE: WLP) from the list.  Both stocks are still maintained as officially being BUY rated there, but Goldman Sachs sees a near-term opportunity in CIGNA shares.  In fact, the 6-month price target on CIGNA gives an implied upside of 30%.

CNH Global N.V. has also been booted off of the CONVICTION BUY LIST, although that is because of a stop-loss feature.  The firm is maintaining a BUY rating and says it is not a seller at current levels.  The stock is down some 22% since its addition to the list on November 27, 2007.

Jon C. Ogg
February 8, 2008

Posted on: February 8, 2008 – 8:13 am in Analyst Calls, , , , , ,

Goldman Sachs Removes Google From Buy Lists (GOOG)

Goldman Sachs is making a ratings change on Google (NASDAQ: GOOG) this morning.  Google has been removed from the Goldman Sachs Technology Framework Favorite Growth List after seeing shares drop some 14.1% since being added to the list on January 18, 2008 (compared to up 5.3% for the S&P 500 Index).  The stock is also being removed from the Goldman Sachs Conviction Buy List due to underperformance to date.

Goldman Sachs notes that there is no official ratings change as there is no change to its Buy rating on the stock.  This notes a belief that the recent drop is due to concern over its potential exposure to a macroeconomic slowdown.  Goldman remains positive with a compelling valuation even after it lowered estimates ahead.  The firm also noted that Google can maintain approximately 20% revenue earnings growth from 2009 to 2012.

This technology list has some stop loss features that trigger removals. Goldman Sachs’ 2008 year-end price target is $700.00.

Jon C. Ogg
February 4, 2008

Posted on: February 4, 2008 – 7:48 am in Analyst Calls, Internet, ,

Goldman Sachs Conviction Buy List Changes In Gold Sector (ABX, FCX)

Goldman Sachs is making a key change in the gold sector this morning.  The investment banking giant is adding Freeport-McMoRan Copper & Gold (NYSE: FCX) to the Americas Conviction Buy List.  This stock is replacing Barrick Gold (NYSE: ABX) on the Americas Conviction Buy List.

FCX is noted as being down over 15% year to date and being inexpensive based on a 49% upside from current prices to Goldman’s 12-month $129.00 price target.  Its leverage in copper is perhaps one of the more favorable issues according to the note, and Goldman notes that it believes copper consumption will be least affected of the base metals in a Western economic slowdown.

Barrick’s removal from the Americas Conviction Buy List comes on the heels of strong performance, which is actually up 29% since being added to the list on November 27, 2007.  Barrick is also up some 90% since April 2006 when it was first given a Buy rating.  Goldman Sachs is still maintaining its official Buy rating on Barrick along with a $66 price target.  The firm believes this was the beneficiary of higher gold prices over $900/ounce as the stock outperformed mining and metals peers.  It also believes this is a top gold investment vehicle.

This call looks more like a relative value call based upon performance and value, and it could even be an implied pairs trade in the sector to some.

Jon C. Ogg
January 31, 2008

Posted on: January 31, 2008 – 7:56 am in Analyst Calls, Metals, , , , ,

Emerson Added to Goldman Sachs Conviction Buy List (EMR, DHR, TYC)

Goldman Sachs has raised its "Neutral" rating on Emerson Electric (NYSE:EMR) and added it to the Conviction Buy List.  Goldman based the upgrade on positive earnings outlook and an attractive risk versus rewards analysis.  Its 2008 and 2008 estimates were raised and it now sees 12% upside to the $52.00 prior target with a new target set at $58.00.  Goldman Sachs also noted that Emerson is one of its six well positioned multi-industry primes at this stage of the cycle and lists catalysts as upward earnings revisions and even lists M&A in the fold.  As a "flight from the dollar" this works as well, because Goldman Sachs lists 52% of sales being non-U.S and noted exposure to oil and gas.

On the reverse, Goldman Sachs downgraded Danaher Corp. (NYSE:DHR) to Neutral and downgraded Tyco International (NYSE:TYC) to a "SELL" rating.

Emerson Electric shares are trading up over 2% pre-market at $52.75.  Danaher shares are down 1% at $82.00 pre-market and Tyco shares are trading down 1.5% at $44.00 in pre-market activity.

Jon C. Ogg
September 27, 2007

Posted on: September 27, 2007 – 7:57 am in Analyst Calls, , , , , ,