Goldman Sachs Publishes Report on Consumer Beverages and Tobacco
A report from Goldman Sachs states that it shifts its preference in staples towards Packaged Food, maintains Attractive coverage view on Beverages, and rates Tobacco Neutral.
Goldman Sachs writes, “We have been broadly constructive on the Staple sector, but preferred Beverages over Food. We are now shifting our preference towards the Packaged Food sector, as we raised our coverage view to Attractive” and, “US tobacco valuation is at an all-time high versus the S&P500 and other Consumer Staples sub-sectors, pricing in the retail take-home-data has been muted, and share losses by market leader Marlboro creates greater risk to pricing and profit outlook for the industry in 2012”.
Companies included in the Goldman Sachs report are: General Mills (NYSE: GIS), The J.M. Smucker Company (NYSE: SJM), The Coca-Cola Company (NYSE: KO), Fortune Brands (NYSE: BEAM), and Philip Morris International (NYSE: PM)
