Colin McGranahan |
First TeamColin McGranahan Sanford C. Bernstein Second Team Gary Balter, Credit Suisse Third Team Matthew Fassler, Goldman Sachs |
Returning to the top spot after spending last year in second place, Colin McGranahan of Sanford C. Bernstein is praised by clients for work that is “thought-provoking” and “forward-looking.” McGranahan, 37, impressed clients with a July 2006 report concluding that Internet-based research was adversely affecting consumer electronics retailers, which rely heavily on in-store salespeople. He followed with a hold recommendation on Best Buy Co. last October. Through mid-September shares of the Minneapolis-based retailer had fallen 20.0 percent, while the broad market advanced 7.8 percent. Up one notch to second is Gary Balter, who “thinks like a buy-sider,” according to one money manager. Anticipating that the looming housing market meltdown would result in homeowners spending less money to fix up their properties, the Credit Suisse analyst downgraded Home Depot to sell in September 2006, citing slowing growth at the Atlanta-based chain of home-improvement superstores. Home Depot’s same-store sales fell 7.6 percent in the first quarter and 5.2 percent in the second quarter, and in July the company lowered its earnings estimates for 2007 by 15 to 18 percent. Jumping from runner-up to third, Matthew Fassler of Goldman Sachs “distills extraneous information down to what’s really important,” says one client. Fassler had success with RadioShack Corp. early this year, citing cost-cutting improvements not built into the Fort Worth, Texas–based electronics retailer’s stock’s price. He rated the stock a buy in January, at $20.82. In May, after the stock had soared 64.0 percent, to $34.14, he downgraded to hold, on valuation. |
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Consumer: Retailing/ Hardlines