Following the release of its earnings report yesterday,

Ariba

(ARBA)

was downgraded by

ABN Amro

to add from buy. The business-to-business company reported earnings of 5 cents a share for the quarter, besting expectations for earnings of 2 cents a share.

In its comment, ABN Amro acknowledged the quarter's results, but said it was "concerned with a perceived slowdown in sequential revenue growth when deferred revenue is taken into account." Sequential revenue growth (or quarter-over-quarter) increased 26%, slower than in

previous quarters.

By contrast,

Credit Suisse First Boston

raised Ariba's fiscal 2001 earnings per share estimates to 26 cents a share from 14 cents a share, and 2002 estimates to 56 cents from 42 cents a share.

Following yesterday's earning warnings by PC makers

Hewlett-Packard

(HWP)

and

Gateway

(GTW)

, analysts are predictably taking apart the PC manufacturers at a rate with which even your tinkering father would be impressed.

This morning,

Robertson Stephens

, attempting to think outside the box, trimmed estimates on

Dell Computer

(DELL) - Get Dell Technologies Inc Class C Report

for 2001 and 2002.

J.P. Morgan Chase

,

Goldman Sachs

,

Bear Stearns

and CSFB, meanwhile, all chopped estimates on H-P for coming fiscal years, following that company's lead.

Salomon Smith Barney

cut its price target on the company to $32 from $40, and cut its earnings estimates as well.

CSFB also downgraded printer manufacturer

Lexmark

(LXK)

this morning, dropping its rating to hold from buy. They say the company is likely to earn $2.60 a share for 2001, lower than the current consensus of $2.70 a share.

Salomon Smith Barney slashed its rating on

Sun Microsystems

(SUNW) - Get Sunworks, Inc. Report

to neutral from buy and reduced its price target on the computermaker, citing the risk from slowing business computer spending.

Salomon analyst John Jones cut his 12-month price target to $30 from $55, below current levels, and said he made a relatively minor earnings estimate cut, to 69 cents a share from 71 cents for fiscal 2001, and to 85 cents a share from 90 cents a share for fiscal 2002.

Credit Suisse First Boston told clients to overweight chemical stocks this morning, citing anticipated strengthening in the economy and lower natural gas prices. They're specifically talking about

Dow Chemical

(DOW) - Get Dow, Inc. Report

,

Solutia

(SOI) - Get Solaris Oilfield Infrastructure, Inc. Class A Report

,

Lyondell

TheStreet Recommends

(LYO)

and

PPG

(PPG) - Get PPG Industries, Inc. Report

.

Upgrades

AT&T

(T) - Get AT&T Inc. Report

: UP to long-term buy from market performer at J.P. Morgan Chase; price target: $33.

Federated Department Stores

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: UP to intermediate-term buy from neutral at

Merrill Lynch

; price target: $33.

Downgrades

Goldman Sachs downgraded several railroad companies this morning. All five names were downgraded to market performer from a previous market outperformer rating. They are:

Burlington Northern

(BNI)

,

Canadian National Railway

(CNI) - Get Canadian National Railway Company Report

,

CSX

(CSX) - Get CSX Corporation Report

,

Norfolk Southern

(NSC) - Get Norfolk Southern Corporation Report

, and

Union Pacific

(UNP) - Get Union Pacific Corporation Report

.

Motorola

(MOT)

: earnings estimates DOWN to 80 cents a share from 88 cents a share for 2001 at ABN Amro.

Rohm & Haas

(ROH)

: DOWN to outperform from buy at Salomon Smith Barney.

Initiations

Fuelcell

(FCEL) - Get FuelCell Energy, Inc. Report

: NEW buy at Robertson Stephens.

Salton

(SFP)

: NEW buy at CSFB; price target: $25.

Peregrine

(PRGN)

: NEW buy at CSFB.

Jefferson-Smurfit

(JS)

: NEW buy at Merrill Lynch.