Analyst: ArvinMeritor dropped from Goldman list

NEW YORK

Goldman Sachs removed auto supplier ArvinMeritor Inc. from a list of highly recommended stocks Wednesday, but said it's still a good buy.

THE OPINION: Since ArvinMeritor was placed on Goldman's "Conviction Buy List" in April, the shares have fallen, but less than the broader market, as measured by the Standard & Poor's 500 index, analyst Patrick Archambault wrote in a note to investors. Over the last 12 months they've risen about 80 percent. Archambault said the supplier's earnings prospects remain significantly above the sector's average because of the growing need to replace commercial trucks in the European and North American markets and a rebound the aftermarket and trailer business. The risk is that the recovery in the truck market will be delayed. Goldman replaced ArvinMeritor, on the list, with office supply retailer Staples Inc.

THE STOCK: ArvinMeritor shares fell 6 cents to $14.03 in Wednesday afternoon trading.