In a not-quite-surprising move,

ABN Amro

,

Goldman Sachs

and

Lehman Brothers

lowered earnings estimates on

Altera

(ALTR) - Get Report

, which

warned last night.

ABN Amro cut its 2000 EPS view to 97 cents from $1.02, its 2001 EPS view to $1.20 from $1.55 and its12-month price target to $40 from $60. Goldman lowered Altera's fourth-quarter EPS view to 27 cents from 32 cents and its 2001 EPS view to $1.25 from $1.55. Lehman knocked Altera's 2000 EPS to 97 cents from $1.02 and its 2001 EPS view to $1.20 from $1.40.

Robertson Stephens

and

Deutsche Banc Alex. Brown

went further by downgrading the stock. Robertson Stephens cut it to long-term attractive from a buy, while Alex. Brown decreased the stock to buy from strong buy. Also, Alex. Brown lowered its fourth-quarter EPS to 27 cents from 32 cents and its 2001 EPS view to $1.30 from $1.60.

Lehman also slashed

Gateway's

(GTW)

12-month price target to $35 from $85. The firm also decreased its 2000 EPS view to $1.60 from $1.85 and its 2001 EPS view to $1.87 from $2.25.

Bear Stearns

,

Salomon Smith Barney

and

J.P. Morgan

got in on the action, too. Bear Stearns cut its 2001 EPS estimate to $1.90 from $2.25, Salomon took it down to neutral from buy, while J.P. Morgan downgraded it to market perform from buy.

Goldman said

CNet Networks'

(CNET) - Get Report

price weakness makes it an attractive entry point. The stock closed at $22.25 yesterday.

Upgrades

Bebe Stores

(BEBE)

: UP to buy from long-term attractive at Robertson Stephens.

Brocade

(BRCD)

: 2001 EPS view UP to $1.25 from $1.05 at Goldman.

Pacific Sunwear of California

(PSUN)

: UP to buy from hold at

Credit Suisse First Boston

.

Stratos Lightware

(STLW)

: 2001 EPS view UP to 25 cents from 22 cents at Lehman and 2002 EPS view UP to $45 cents from 36 cents.

Downgrades

Cognex

(CGNX) - Get Report

: DOWN to long-term attractive from buy at Robertson Stephens; also, 2000 EPS DOWN to $1.50 from $1.59 and 2001 EPS view DOWN to $1.12 from $2.01.

Intimate Brands

(IBI)

: fourth-quarter EPS view DOWN to 61 cents from 65 cents as Goldman. Also, the firm cut its 2000 EPS view to $1.03 from $1.08 and its 2001 EPS view to between $1.17 and $1.20 from $1.23.

Kellogg

(K) - Get Report

: DOWN to underperform from market perform at

Banc of America

.

The Limited

(LTD)

: fourth-quarter EPS view DOWN to $75 cents from 78 cents at Goldman.

PMC Sierra

(PMCS)

: DOWN to neutral from outperform at Lehman.

AnnTaylor

(ANN)

: DOWN to long-term attractive from buy at Robertson Stephens; also, 2000 EPS view DOWN to $2.44 from $2.51 and 2001 EPS view DOWN to $2.80 from $3.

Xilinx

(XLNX) - Get Report

: 12-month price target DOWN to $70 from $100 at ABN Amro and 2001 EPS estimate to $1.26 from $1.31. Lehman said Xilinx may lower revenue guidance Monday. CSFB cut the stock in a group move.

Initiations

Applied Micro Circuits

(AMCC)

: NEW neutral at Lehman; price target: $60.

Stryker

(SYK) - Get Report

: NEW buy at CSFB; price target: $60.

Group Moves

Credit Suisse First Boston downgraded and cut estimates on several semiconductors:

  • Xilinx: DOWN to buy from strong buy; and fourth-quarter EPS estimate DOWN to 31 cents from 35 cents. Price target was knocked down to $47 from $100.
  • Lattice Semiconductor (LSCC) - Get Report: DOWN to buy from strong buy; and fourth-quarter EPS estimate DOWN to 34 cents from 35 cents. Price target cut to $28 from $50.
  • Fairchild Semiconductor (FCS) : DOWN to buy from strong buy; and fourth-quarter EPS estimate DOWN to 83 cents from 84 cents. Price target lowered to $44 from $60.
  • Intersil (ISIL) : DOWN to buy from strong buy; and fourth-quarter EPS estimate DOWN to 24 cents from 26 cents. Price target slashed to $46 from $80.
  • Microchip (MCHP) - Get Report: DOWN to buy from strong buy; and price target down to $38 from $60.
  • Silicon Storage Technology (SSTI) - Get Report: DOWN to buy from strong buy; and price target cut to $29 from $45.
  • Altera: fourth-quarter estimate DOWN to 26 cents from 33 cents and price target sliced to $30 from $73.
  • Atmel (ATML) : price target trimmed to $18 from $32.
  • Cypress Semiconductor (CY) - Get Report: fourth-quarter EPS estimate DOWN to 75 cents from 77 cents and price target reduced to $45 from $69.
  • LSI Logic (LSI) - Get Report: fourth-quarter EPS estimate DOWN to 33 cents from 35 cents; and price target decreased to $28 from $48.
  • Integrated Circuit Systems (ICST) : fourth-quarter EPS DOWN to 22 cents from 23 cents; and price target lowered to $24 from $30.

CSFB started coverage of major pharmaceuticals:

  • Pharmacia (PHA) : NEW buy; price target: $72.
  • Eli Lilly (LLY) - Get Report: NEW hold; price target: $98.
  • Merck (MRK) - Get Report: NEW buy; price target: $105.
  • Schering-Plough (SGP) : NEW buy; price target: $62.50.
  • Pfizer (PFE) - Get Report: NEW buy; price target: $55.