Following the sun, analysts this morning have trimmed earnings estimates for Unix server maker Sun Microsystems (SUNW Quote - Cramer on SUNW - Stock Picks), which fell short of revenue expectations when
reporting earnings last night. However, SG Cowen went a step further, downgrading the stock to neutral from buy.
Lehman Brothers trimmed 2001 estimates to 67 cents a share from 72 cents a share, and dropped 2002 estimates to 84 cents a share from 88 cents a share.
Merrill Lynch cut fiscal 2001 EPS estimates to 68 cents from 71 cents, expressing caution about the company.
"The economic slowdown reduces visibility and raises the risk that Sun could be the next
Dell," wrote Merrill analyst Tom Kraemer this morning. "We continue to believe Sun is the best positioned server company and that it should continue to gain share. The question is the rate of share gains and continued economic deterioration may mean additional downward revisions."
Credit Suisse First Boston upgraded Dell (DELL Quote - Cramer on DELL - Stock Picks) this morning to buy from hold. Of the PC maker, CSFB said, "While economic uncertainties could still pressure Dell's near-term earnings performance, secular industry trends now favor Dell's business model, increasing our confidence in Dell's ability to hit numbers." Upgrades Biomet (BMET Quote - Cramer on BMET - Stock Picks): UP to buy from long-term attractive at Robertson Stephens. eBay (EBAY Quote - Cramer on EBAY - Stock Picks): UP to strong buy from buy at W.R. Hambrecht. Estimates for 2001 and 2002 upped to 38 cents a share and 65 cents a share from 37 cents a share and 57 cents a share. Lehman raised 2000 estimates to 24 cents a share from 22 cents a share. Johnson Controls (JCI Quote - Cramer on JCI - Stock Picks): UP to strong buy from buy at Lehman; price target up to $70 from $63. Lakehead Pipeline Partners (LHP Quote - Cramer on LHP - Stock Picks): UP to buy from market perform at Lehman. Micron Technology (MU Quote - Cramer on MU - Stock Picks): UP to strong buy from accumulate at Prudential Securities. USA Education (SLM Quote - Cramer on SLM - Stock Picks): UP to buy from outperform at Salomon Smith Barney. Downgrades Critical Path (CPTH Quote - Cramer on CPTH - Stock Picks): DOWN to buy from strong buy at Robertson Stephens. Delta (DAL Quote - Cramer on DAL - Stock Picks): DOWN to hold from buy at CSFB. Genentech (DNA Quote - Cramer on DNA - Stock Picks): DOWN to buy from strong buy at CSFB. GlaxoSmithKline (GSK Quote - Cramer on GSK - Stock Picks): DOWN to accumulate from buy at Merrill.
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