Ahead Of The Bell: Tenneco Dropped From Picks List

NEW YORK (AP) — An analyst removed shares of auto parts supplier Tenneco Inc. from a list of recommended stocks Tuesday, saying shares have long-term value but have had a steep run-up recently.

Goldman Sachs analyst Patrick Archambault the stock from the bank's "Conviction Buy" list. He maintained a "Buy" rating and a six-month price target of $20, implying an expected appreciation of 29 percent from its Friday closing price of $15.55.

Shares of Tenneco are more reasonably priced following a strong run so far this year, Archambault said. The stock has risen more than fivefold year to date, and there is potential for further gains in the coming years as the automotive market recovers.

"We still believe the shares represent a very good value, but given the recent run up and a dearth of positive catalysts in the very near term, we are removing it" from the top-picks list, he wrote in a note to investors.

"While we do think earnings and auto sales are likely to be positive catalysts in the medium term, we think auto sales in (September and October) are likely to be soft given low inventories and some payback effect from the ... Cash for Clunkers program," he continued.