Goldman Sachs Dumps Wal-Mart (WMT) In Favor of Target (TGT)

Stock Tickers: WMT, TGT, ARA, BAX, CCK, FLEX

Goldman Sachs has made several changes to its Conviction Buy List this morning, most noted was a removal of Wal-Mart (WMT) from the list and replaces it with Target (TGT).  TGT was given a $68 target and WMT tatrget was cut to $53 from $57 per share.  On Wal-Mart Goldman siad they believe a turnaround is in its early stages and they see little positive momentum into the critical holiday season.  They are maintaining an official Buy rating on WMT, but simultaneously lowered Fiscal 2006 EPS from $2.87 to $2.83.  Target (TGT) estimates were raised by $0.01 to $3.18.

Baxter (BAX) walso trimmed off the Americas Conviction Buy List.

Aracruz (ARA) was also removed from the Americas Convistion Buy List as it is within 4% of the $63 target the have.

Flextronics (FLEX) also removed from Americas Convistion Buy List, shares are down 9% since being added to the list in September and they expect a more of a seasonal slowdown.

Crown Holdings (CCK) was added to the Americas Conviction Buy List.

Jon C. Ogg
December 1, 2006