UPDATE 1-Goldman removes Coca-Cola from conviction buy list

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July 18 (Reuters) - Goldman Sachs removed Coca-Cola Co (KO.N) from Americas conviction buy list on what it termed was a "mixed" second-quarter earnings report.

Although the company reported better-than-expected quarterly earnings, overall sales by volume rose only 3 percent, down from 5 to 6 percent growth in each of the last four quarters.

The deteriorating U.S. economy is accelerating declines in sales volume of its traditional soft drinks, which include Coca-Cola, Sprite and Fanta, as well as bottled Dasani water.

"We now expect the drag from a weak US along with a tempered international backdrop to hold performance back," analyst Judy Hong wrote in a note to clients.

She expects the company to partly offset lighter volume results with pricing, but added that the market will assign less value to pricing-driven gains in the current inflationary environment.

Hong kept the "buy" rating on the stock, citing the company's international exposure, commodity insulation and an attractive valuation, but cut her price target by $11 to $57 on the stock. She also raised her 2008 forecast by 3 cents to $3.11 a share, but trimmed her 2009 expectations by 1 cent to $3.38 a share.

Credit Suisse, however, raised its estimates for this year and the next, but joined Goldman in cutting the price target. Credit Suisse analyst Carlos Laboy expressed fear over a continuing fall in volumes and revenue at the company, as bottlers raise pricing to tackle commodity costs.

Laboy raised his estimates by 1 cent to $3.11 for 2008 and by 4 cents to $3.39 a share for the coming year. He cut the price target on the stock by $8 to $60.

Shares of the company closed at $50.34 Thursday on the New York Stock Exchange. (Reporting by Adveith Nair in Bangalore; Editing by Anil D'Silva)