Goldman Sachs Full Research Summary (MAR 16, 2007)

GOLDMAN SACHS has made several updates on its Americas Conviction Buy List this morning:

Federated Investors (FII) is added to CONVICTION BUY LIST to replace AllianceBernstein Holding L.P. (AB).  Deere (DE) maintained on the CONVICTION BUY LIST ahead of next Tuesday analyst meeting; sees downside to earnings already priced in and would use any weakness next week to add to positions in the name.

Starbucks was ADDED to CONVICTION BUY LIST at Goldman Sachs.   Goldman sees 3 trewnds that can stem recent weakness and take it toward the $43 target. 1) trading reversal on key events, 2) return to margin improvements in the second half of the year, 3) valuations screens make the stock look cheap.  Goldman Sachs sees 45% upside in SBUX at this point.  McDonalds (MCD) was Removed from the CONVICTION BUY LIST and replaced with Starbucks.  Goldman sees more upside in SBUX at this point and better valuations.

ADDITIONAL RESEARCH CALLS from Goldman Sachs:

CB Richard Ellis Group (CBG) was raised from Neutral to BUY with $2.00 and $2.30 EPS targets for this year and next.

Franklin Resources (BEN) was downgraded from Buy to NEUTRAL, although this year and next year earnings expectations were bumbed up roughly 1%.  Brookdale Senior Living (BKD) was downgraded from buy to NEUTRAL and loss expectations were widened out for this year and next.

Savvis (SVVS) started as BUY at Goldman Sachs with $50 targtet.

Radiation Therapy (RTSX) reiterated Buy and raised estimates after accretive acquisition.

Biovail (BVF) maintained buy and $24 price targtet after the company conference call and review of its quarter.

Earnings Estimates RAISED for the following: Pep Boys (PBY), Coventry Health Care (CVH), Tektronix (TEK).

Earnings Estimates DECREASED on Bear Stearns (BSC).