Wednesday, January 6, 2010
Goldman upgrades CMI, and ups target on X
Key themes for 2010
We are focused on three themes in 1H2010:
(1) Early-cycle exposure at a reasonable price - leaner cost structures and improving demand in consumer,resi construction, auto, truck and general industrial markets should fuel upside to consensus EPS for exposed companies;
(2) Emerging markets (EM) and commodity reinvestment, and (3) strong balance sheet optionality to drive acquisitions and buyback and upside to consensus EPS. As 2010 evolves, we will look to increase exposure to later-cycle end markets, where valuations are attractive.
Our top ideas for 1H2010 are: CMI (early cycle N America truck exposure)...
Goldman also upped their target on X from 54 to 67. When X hits 67, Goldman will up the price again, because that is how the game is played.
GS main 010610
Posted by Palmoni at 12:19 PM