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Lehman Brothers

revised its global portfolio, raising cyclicals to overweight, cutting defensives to neutral and financials to underweight.

The firm said it believes that while global growth will slow, the market will avoid a recession. Cyclicals are discounting a gloomier outcome for activity and so offer attractive value. Lehman said financials were downgraded because they were priced for peak profitability, which could prove difficult to sustain in an economic slowdown.

Also, Lehman lowered

Cisco's

(CSCO)

12-month price target to between $60 and $65 from $90 over concerns about capital expenditures spending.

Upgrades

Avnet

(AVT)

: 2001 EPS estimate UP to $3.48 from $3.23 at

Credit Suisse First Boston

; and 2002 EPS estimate at $4.17.

Chubb

(CB)

: 12-month price target UP to $90 from $87 at

UBS Warburg

.

Ensco

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: UP to strong buy from buy at CSFB.

Gilead Sciences

(GILD)

: UP to strong buy from buy at

Banc of America

.

Medtronic

(MDT)

: 12-month price target UP to $65 from $56 at CSFB.

Teco

(TE)

: UP to buy from hold at CSFB.

UnitedHealth Group

(UNH)

: 2000 EPS view UP to $4.15 from $4.09 at

ABN Amro

; and 2001 EPS view UP to $4.90 from $4.76. Also, 12-month price target UP to $138 from $115 at

Goldman Sachs

and 2001 EPS view to $5 from $4.80. Lehman raised the company's 2001 EPS view to $4.15 from $4.07 and 2001 EPS view to $4.85 from $4.70.

Downgrades

CNH Global

(CNH)

: DOWN to buy from strong buy at CSFB.

John Hancock

(JHF)

: DOWN to neutral from accumulate at

Merrill Lynch

.

Solutia

(SOI)

: 2000 EPS view DOWN to $1.20 from $1.25 at UBS Warburg.

Initiations

Grant Prideco

(GRP)

: NEW buy at CSFB; 12-month price target: $25.

New Power

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: NEW buy at CSFB; and NEW buy at

Salomon Smith Barney

with price target of $26.

Oplink

(OPLK)

: NEW 12-month price target: $40 at UBS Warburg.

Group Moves

Deustsche Banc Alex. Brown

upgraded paper stocks:

  • Bowaterundefined: UP to strong buy from buy.
  • International Paper (IP) : UP to strong buy from buy.
  • Georgia-Pacific (GP) : UP to buy from market perform.
  • Mead (MEA) : UP to strong buy from market perform.
  • Smurfit-Stone Container (SSCC) : UP to strong buy from market perform.
  • Willamette Industries (WLL) : UP to buy from market perform.
  • Weyerhaeuser (WY) : UP to buy from market perform.