Goldman Sachs Research Summary (May 10, 2007)

Goldman Sachs has raised estimates on the following: NVR (NVR), SAVVIS (SVVS), United Auto Group (UAG), News Corp (NWS), Multimedia Games (MGAM), NPS Pharma (NPSP), Stereotaxis (STXS), Trimeris (TRMS), Charles River Lab (CRL), Keane (KEA), Brooks Automation (BRKS), DIRECTV (DTV), Calumet Specialty Products (CLMT).

Goldman Sachs has cut estimates on the following: Beazer Homes (BZH), Centex (CTX), DR Horton (DHI), Meritage Homes (MTH), Pulte Homes (PHM), Standard Pafici (SPF), Ryland (RYL), M.D.C. Holdings (MDC), M/I Homes (MHO), Brinker International (EAT), Cumulus Media (CMLS), Kimball International (KBALB), Maidenform Brands (MFB), Whole Foods (WFMI), Frontier Oil (FTO), Conseco (CNO).

SAVVIS (SVVS) is replacing Leap Wireless International (LEAP) on the Americas Conviction Buy List.  LEAP is still a BUY rated stock, but shares are up 43% since added to the list and Goldman sees more upside in SVVS.

Teva Pharmaceuticals (TEVA) reiterated a buy at Goldman as it believes that Teva will win over Mylan in the bidding for the generic business of Merck KGaA.

Aracruz Cellulose (ARA) reiterated Buy.

As you can see in the “estimates cut” section, housing stocks were almost all lowered on estimates.  Goldman maintains that the housing slowdown itself is showing no signs of slowing.  It sees further deterioration and sees a 20% sale drop in new homes in 2007 and a further 5% in 2008.

Jon C. Ogg
May 10, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.