Goldman Sachs Beverage Changes (KO, HANS, TAP)

Goldman Sachs is out noting that investors hunkering down into earnings may want to look at beverages as an attractive sector with reasonable valuations.  Goldman Sachs also believes that macro weakness should continue to support defensive stock names for investors.  Interestingly enough the note also suggests that a demand rebound in the U.S. along with moderating cost inflation and international growth will lead to strong earnings growth.  It even noted an approximate 11% EPS gain in Q4 2007 and a gain of 14% EPS growth in 2008.

• Goldman Sachs is adding Coca-Cola (NYSE: KO) to its Conviction Buy List this morning. 
• Hansen Natural Corp. (NASDAQ: HANS) is seeing its fiscal EPS raised to $1.63 from $1.61 for this year and raised much higher for next year up to $2.25 EPS from a prior target of $2.10.
• Molson Coors Brewing Co. (NYSE: TAP) is seeing a trim in estimates from Goldman Sachs down to $2.61 from $2.64 this year and down to $2.96 from $3.18 for next year.

Jon C. Ogg
January 17, 2008