The investment bank has long-term growth tailwinds and is a pure play on a capital market recovery, according to Goldman.
A recovery in equity capital markets already underway should help the stock given Jefferies' strength in trading.
"We think these structural and cyclical drivers, plus a potential positive upside catalyst from monetization of the last two remaining stakes, and a strong dividend, should drive upside to JEF's shares," Kron said.
Macy's came off the list after Goldman analyst Brooke Roach lowered her price target 26% following the retailer's fiscal second-quarter earnings.
M YTD mountain Macy's stock in 2023 Macy's joins Spirit AeroSystems and Tanger Factory Outlet Centers , both of which were removed in August from what Goldman calls the "Director's Cut" conviction list.
Persons:
Jefferies, Goldman Sachs, Goldman, Steven Kron, Kron, Macy's, Brooke Roach, — CNBC's Michael Bloom
Organizations:
Sumitomo, Outlet Centers
Locations:
U.S