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Investing.com -- Goldman Sachs updated its US Conviction List for April, adding GE Vernova, Kodiak Gas Services, Cloudflare (NYSE:NET), and AT&T (NYSE:T) while removing Brixmore Property Group, Evercore, IBM (NYSE:IBM), and Norwegian Cruise Lines.
According to Goldman Sachs analysts, the decision to remove stocks from the list is based on factors such as price realization, the passage of catalysts, or a shift in conviction.
Importantly, all removed stocks remain Buy-rated despite no longer being among Goldman’s top investment ideas.
GE Vernova was added as the investment bank sees the company well-positioned to capitalize on rising electricity demand over the next decade.
They also highlighted pricing power in a constrained gas turbine supply market.
For Kodiak Gas Services, Goldman pointed to a strong macro backdrop, a consistent beat-and-raise track record, and expanding free cash flow flexibility as reasons for its inclusion.
Cloudflare made the list due to “a combination of improving sales productivity and visible traction on a critical product cycle. The bank also outlined a path to upside earnings power.
Finally, AT&T was added as the bank sees upside to consensus estimates and double-digit annualized returns. ”Fundamentals should be driven by a now-consolidated wireless sector that is yielding better price discipline and stronger margins,” said Goldman Sachs.
Meanwhile, Evercore was removed due to a weaker-than-expected M&A backdrop. Goldman said the capital markets recovery has been delayed.
Norwegian Cruise Lines saw pressure in March amid investor concerns about travel spending, with analysts estimating that cruise stocks were pricing in a 22% cut to 2026 earnings.
Despite these removals, Goldman Sachs continues to rate all four stocks as Buys, reflecting long-term potential even as they fall off the firm’s top investment list.