NEW YORK (TheStreet) -- Coca-Cola Enterprises (CCE) stock has been removed from Goldman Sachs' Conviction Buy list, the firm said Monday. Analysts said fundamental acceleration has not materialized and the company sees lower volumes in the UK. A $50 price target and "buy" rating was set.
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Separately, TheStreet Ratings team rates COCA-COLA ENTERPRISES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate COCA-COLA ENTERPRISES INC (CCE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- COCA-COLA ENTERPRISES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, COCA-COLA ENTERPRISES INC increased its bottom line by earning $2.45 versus $2.25 in the prior year. This year, the market expects an improvement in earnings ($2.91 versus $2.45).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Beverages industry. The net income increased by 88.5% when compared to the same quarter one year prior, rising from $61.00 million to $115.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 1.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Beverages industry and the overall market, COCA-COLA ENTERPRISES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: CCE Ratings Report