Goldman Sachs Downgrades ArvinMeritor (ARM)

Goldman Sachs has downgraded shares of ArvinMeritor, Inc. ARM to Neutral from Buy. It has a $24 price target on shares. In the research note sent to investors, Goldman writes, "We are downgrading shares of ArvinMeritor to Neutral from Buy. The move is driven by our concurrent initiation of GM at Buy. While we continue to remain bullish on the recovery in the truck cycle, we believe that, at $21, shares are pricing in a reasonable amount of the volume opportunity, and given concerns regarding revenue mix headwinds from the military business and conservative guidance, the risk/reward appears more evenly balanced than before. Since adding ARM to the Buy List on June 18, 2009, shares are up 447% vs. 37% for the S&P 500. Over last 12 months ARM shares have risen 84% vs. a 13% gain in the S&P 500." Shares of ARM closed at $20.52 on Friday.