Analyst Actions: Amerada Hess, Emerson Electric, Goodyear Tire, Illumina - TheStreet

Bear Stearns

cut its rating on

Amerada Hess

(AHC) - Get Report

to neutral from buy, saying

President Clinton's

decision to release 30 million barrels of oil from reserve strengthened the firm's conviction that oil prices are headed for a steep decline.

A research note from the firm said the decision will result in a quick build-up of petroleum inventories, which, "in conjunction with a sharp increase in oil supplies from

OPEC

in recent months, should be the catalyst for a steep drop in oil prices, in our judgement. We continue to believe that a price for

West Texas Intermediate

crude of $20 per barrel in 2001 is a reasonable expectation."

Bear Stearns said Amerada Hess' stock price is likely to be under pressure during the period in which oil prices are falling. The firm said the stock has not reached its price target of $75 per share, but it has been a good performer and has advanced 37% in the past seven months. "Given the company's sensitivity to changes in oil prices and the stock's recent performance, we believe the stock price could correct by some 15% to 20% from the current level," according to the note.

Still, the firm said that the company's oil and gas production growth -- estimated at 10% in 2000 and 5% in 2001 -- exceeds that of most major oil companies, and Bear Stearns will continue to believe the long-term outlook for Amerada Hess is good.

Upgrades

Calpine

(CPN)

: 2000 EPS estimates UP to $1.70 from $1.40 at

Donaldson Lufkin & Jenrette

; and 2001 EPS estimates UP to $1.95 from $1.70

Emerson Electric

(EMR) - Get Report

: UP to buy from outperform at

Salomon Smith Barney

.

Neuberger Berman

(NEU) - Get Report

: UP to buy from accumulate at

Merrill Lynch

.

PG&E

(PCG) - Get Report

ADDED to recommended for purchase list at

Goldman Sachs

.

Downgrades

AmSouth Bancorp

(ASO)

: DOWN to neutral from buy at

Lehman Brothers

; and price target DOWN to $13 from $25.

Clarcor

(CLC)

: DOWN to hold from outperform at

ABN Amro

.

Goodyear Tire

(GT) - Get Report

: 2001 EPS estimate DOWN to 85 cents a share from $1.80 at

UBS Warburg

.

Owens & Minor

(OMI) - Get Report

: DOWN to hold from buy at

Credit Suisse First Boston

.

Rayonier

(RYN) - Get Report

: 2000 earnings outlook DOWN to $2.35 a share from $2.50 at Goldman; and 2001 earnings outlook to $2.85 from $3.20 a share.

Safeco

(SAFC)

: 2000 EPS estimate DOWN to 80 cents a share from 95 cents at Goldman.

Initiations

APW

(APW)

: NEW strong buy at

Banc of America Securities

; price target: $65.

Illumina

(ILMN) - Get Report

: NEW outperformer at Goldman.

TeleCommunication Systems

(TSYS)

: NEW strong buy at

Deutsche Banc Alex. Brown

; price target: $38.

XL Capital

(XL)

: NEW outperform at Lehman; price target: $85.