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
12-month price target to between $60 and $65 from $90 over concerns about capital expenditures spending.
: 2001 EPS estimate UP to $3.48 from $3.23 at
Credit Suisse First Boston
; and 2002 EPS estimate at $4.17.
: 12-month price target UP to $90 from $87 at
: UP to strong buy from buy at CSFB.
: UP to strong buy from buy at
Banc of America
: 12-month price target UP to $65 from $56 at CSFB.
: UP to buy from hold at CSFB.
: 2000 EPS view UP to $4.15 from $4.09 at
; and 2001 EPS view UP to $4.90 from $4.76. Also, 12-month price target UP to $138 from $115 at
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.
: DOWN to buy from strong buy at CSFB.
: DOWN to neutral from accumulate at
: 2000 EPS view DOWN to $1.20 from $1.25 at UBS Warburg.
: NEW buy at CSFB; 12-month price target: $25.
: NEW buy at CSFB; and NEW buy at
Salomon Smith Barney
with price target of $26.
: NEW 12-month price target: $40 at UBS Warburg.
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.