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) - Get Report

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

Upgrades

Avnet

(AVT) - Get Report

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

Credit Suisse First Boston

; and 2002 EPS estimate at $4.17.

Chubb

(CB) - Get Report

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

UBS Warburg

.

Ensco

(ESV)

: UP to strong buy from buy at CSFB.

Gilead Sciences

(GILD) - Get Report

: UP to strong buy from buy at

Banc of America

.

Medtronic

(MDT) - Get Report

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

Teco

(TE)

: UP to buy from hold at CSFB.

UnitedHealth Group

TheStreet Recommends

(UNH) - Get Report

: 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) - Get Report

: 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

(NPW)

: 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:

  • Bowater (BOW) : UP to strong buy from buy.
  • International Paper (IP) - Get Report: 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) - Get Report: UP to buy from market perform.
  • Weyerhaeuser (WY) - Get Report: UP to buy from market perform.