John Faucher J.P. Morgan
second team Michael Branca Barclays
third team Carlos Laboy Credit Suisse
For the past two years, John Faucher held third place; this year the J.P. Morgan analyst jumps to the top spot. Faucher — “one of the most experienced sell-side analysts in the sector,” according to one money manager — urged investors to buy Coca-Cola Enterprises in November, after rumors of a possible bankruptcy had left the Atlanta-based soft drinks manufacturer’s stock undervalued, at $9.67. The rumors proved false, and CCE’s stock soon began to rise. In mid-May, after the shares had skyrocketed 73.7 percent, to $16.80, and outperformed the sector by 74.6 percentage points, Faucher downgraded them to neutral, on valuation. The downgrade was premature, however; CCE’s stock climbed 20.3 percent further, through August. Faucher, 40, earned a master’s degree in business administration at Cornell University in 1993 and worked as a food analyst at Sanford C. Bernstein before joining J.P. Morgan 11 years ago.
Michael Branca of Barclays Capital repeats in second place. “His recommendations are based on a thorough understanding of the companies he covers,” says one buy-side fan, while others note that the analyst isn’t afraid to break with the consensus. Case in point: Branca initiated coverage of Plano, Texas–based Dr. Pepper Snapple Group with a contrarian overweight rating in April, at $18.50, on improving margins. The stock had bubbled up to $26.44 by late August, beating the sector by 32.2 percentage points.
Carlos Laboy of Credit Suisse takes third place. Laboy advised clients to buy Coca-Cola Co. in March, at $37.71, citing the Atlanta-based soft-drink distributor’s rising global sales. By August 31 the stock had surged 28.3 percent, to $48.37.
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