Goldman Sachs has made some changes to its prized CONVICTION BUY LIST today. These may seem even a bit counter-cyclical when you look at the companies and the economic trends we are witnessing, but that’s what makes a ball game.
Royal Caribbean Cruises Ltd. (NYSE: RCL) has been added to the Conviction Buy List because it has easy comps and better valuations than its extended competitors in lodging and gaming. It also sees less downside risk here versus other sectors after an 18% drop so far in 2008.
Eaton Corp. (NYSE: ETN) was also raised to Conviction Buy with an 8% upside to targets. It was down 7% from the start of February and the firm believes Eaton is more defensive than others in the group with economic weakness and credit market turmoil. On a longer-term basis, it sees 47% upside to a $121 with historical averages.
Jon C. Ogg
March 4, 2008