Goldman Sachs Dumps GE for Lockheed (LMT, GE)

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By Douglas A. McIntyre Published
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This morning, Goldman Sachs has made a key call to its industrials sector.  It is adding Lockheed Martin (NYSE: LMT) to its Industrials Favorite Value List.  Goldman Sachs notes the nature of defense stocks versus industrials in a recession, expectations for a solid earnings report next week, current prices representing a solid entry point.  The firm also believes that Lockheed martin is the cheapest of the large cap defense stocks, and its $122 target implies a 20% upside in the stock at current levels.

While removing General Electric Co. (NYSE: GE) from this list is post-event, it’s really hard to argue with the level of disappointment and game-changer that its earnings miss and earnings warning posed on Friday.  GE is noted as pointing to soft healthcare equipment spending as well.

We noted this on our "Top 10 Pre-Market Calls" as well, but General Electric was downgraded to Perform from Outperform at Oppenheimer it was also downgraded to Peer Perform from outperform at Bear Stearns.

Jon C. Ogg
April 14, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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