Coca-Cola, TJX added to Goldman Sachs' Picks
As stocks continue to tumble after Standard & Poor's cut the U.S. credit ratingfor the first time in history last week, Goldman Sachs has released reports saying it expects Coca-Cola and TJX stocks to rise over the next year.
The investment bank added Coca-Cola to its Americas Conviction Buy List, a listing of the investment bank's top recommendations. It also placed a 12-month price target of $77 on the stock.
Goldman Sachs cited a growth outlook of 10-percent-plus earnings per share, and market share momentum in global beverages, as evidence of the stock's potential to outperform the market.
Among the key risks for the company in the future are a stronger dollar, higher commodity costs, and weaker-than-expected volumes, the note said.
In another report, Goldman Sachs raised its 12-month price target to $66 from $61 for TJX Cos. , a retailer that has seen positive earnings per share growth since 2000 and averaged 15 percent growth annually.
Goldman Sachs note said, "We believe today's levels represent a compelling entry point, as we continue to believe that TJX's business model is built for both good and bad times, and that its stock should outperform in increasingly uncertain times."
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