UPDATE: Goldman Sachs Downgrades Coca-Cola Enterprises to Neutral Following Outperformance

In a report published Monday, Goldman Sachs analyst Judy E. Hong downgraded the rating on Coca-Cola Enterprises

from Buy to Neutral, but reiterated the $40.00 price target. In the report, Hong noted, “We are downgrading CCE to Neutral from Buy following outperformance and a re-rating of shares to better reflect the balance sheet optionality that was central to our thesis. We still view CCE as a top-tier cash returner but top-line growth is likely to remain at the low end of CCE's 4%-6% long-term target for the foreseeable future. In addition, we are reducing our EPS estimates by 3%-5%, mostly reflecting the recent adverse movement in FX. We maintain our 12-month, P/E-based $40 price target, implying 8% upside. Since being added to the Buy List on 10/8/10, CCE is up 63.7% vs. S&P 500 up 34.7%. Over the last 12 months, CCE is +31.6% vs. S&P 500 +11.6%.” Coca-Cola Enterprises closed on Thursday at $36.92.