Goldman Sachs Expands Turkey Cover to 60 Stocks, Adds 13 Buys

Goldman Sachs Group Inc. expanded coverage of Turkish stocks to 60, adding 41 new companies including 13 new “buy” recommendations, the company said in a report dated November 25 and received by e-mail today.

Top picks are based on macroeconomic themes and include the “increasing importance of Turkish industry,” rising domestic consumption and increasing per capita growth, Goldman said.

Goldman now rates 15 Turkish stocks at “buy.” They include builder Enka Insaat & Sanayi AS (ENKAI), fertilizer producer Gubre Fabrikalari AS (GUBRF), gold miner Koza Altin Isletmeleri AS (KOZAL), pharmaceuticals distributor Selcuk Ecza Deposu Ticaret & Sanayi AS (SELEC), glassmakers Turkiye Sise & Cam Fabrikalari AS (SISE), Trakya Cam Sanayi AS and Anadolu Cam Sanayii AS. (ANACM)

The list also includes automobile companies Tofas Turk Otomobil Fabrikasi AS (TOASO) and Dogus Otomotiv Servis & Ticaret AS (DOAS), farm vehicle maker Turk Traktor & Ziraat Makineleri AS (TTRAK), acrylic fiber producer Aksa Akrilik Kimya Sanayii (AKSA) AS, white goods producer Arcelik AS (ARCLK), airport operator TAV Havalimanlari Holding AS (TAVHL) and the holding companies Alarko Holding AS (ALARK) and Yazicilar Holding AS. (YAZIC)

The average potential gain for the new buy-rated stocks is 58 percent compared with an average of 13 percent for Turkish stocks under coverage, the bank said.

No banks were listed with a “buy” recommendation. Turkiye Halk Bankasi AS (HALKB), a state-owned bank, is the preferred bank in Turkey, Goldman said.

Turkey’s economy will “slow sharply and may even enter a relatively mild recession in late 2011 and early 2012,” according to the report. Growth should reach about 1.5 percent in 2012, below the global average, and then return to a higher rate in the medium term.

To contact the reporter on this story: Benjamin Harvey in Istanbul at bharvey11@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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