Analyst Actions: Juniper, Redback, eBay, Banc of America

Morgan Stanley Dean Witter downgraded Juniper Networks(JNPR Quote) and Redback Networks(RBAK Quote) to outperform from strong buy. The firm also cut Cisco's(CSCO Quote) price target to $75 from $90.

Also this morning, Lehman Brothers cut eBay(EBAY Quote) to neutral from buy.

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Lehman strategist Jeffrey Applegate came out this morning with a note saying that Lehman is modestly reducing its earnings per share forecast for the S&P 500, but leaving its equity returns alone as "valuation has moderately improved." Lehman lowered its EPS growth for the third quarter to 10% from its previous 13% expectation. Lehman cut its forecast for the fourth quarter by 60 cents to $15.05, for growth of 8%. For full-year 2001, Lehman is reducing its EPS forecast to $64 from $67, or 10% growth. These are its estimates for the S&P 500 as a whole, put together as an average.

Applegate said he wasn't changing his firm's expected equity returns as valuation has moderately improved.

Downgrades

Bank of America(BAC Quote): fourth-quarter earnings estimate DOWN to $1.13 from $1.33 at Credit Suisse First Boston and lowered 2001 earnings estimates to $5.50 from $5.75.

Digex(DIGX Quote): DOWN to buy from strong buy at Deutsche Banc Alex. Brown.

Macerich(MAC Quote): DOWN to neutral from outperform at Lehman.

Initiations

Heidrick & Struggles(HSII Quote): NEW buy at CSFB.