recommendation this morning: Buy optical networking companies like
on trading weakness.
Dave Kang, the ABN Amro analyst who wrote the note, said demand remains solid despite constraint in the supply side for certain components. He also said his firm expects "relatively strong results" from the sector for the December quarter and that the firm anticipates the next wave of earnings releases, starting in about six weeks, to be a catalyst.
Credit Suisse First Boston
slashed earnings estimates on
after the company said its fourth-quarter earnings would miss estimates by about 10 cents.
The firm lowered fourth-quarter earnings estimates to 72 cents from 89 cents and 2001 EPS estimates to $3.44 from $3.59. Despite the cut, CSFB rates the stock a buy, saying auto stocks are bottoming and a
rate cut in the spring could serve as a catalyst.
: UP to buy from hold at CSFB and 2001 EPS estimate to $1.40 from $1.
: 12-month price target UP to $37 from $30 at CSFB.
: 2001 EPS estimate UP a penny to $1.65 at
: UP to buy from outperform at
and 12-month price target UP to $38 from $32.
: 2001 EPS estimate DOWN to $3.95 from $4.10 at CSFB.
: 2000 EPS view down to 63 cents from 73 cents at ABN Amro and 2001 EPS view to $1.80 from $1.95.
: fourth-quarter earnings DOWN to 44 cents from 78 cents at CSFB and 2000 earnings to $3.01 from $3.35 a share.
: DOWN to neutral from outperform at Lehman.
Butting heads this morning were
, which downgraded the lodging stocks listed below on macro-economic concerns, and Goldman, which said it remains positive on lodging sector stocks like
- Marriott International: DOWN to neutral from buy.
Hilton Hotels (HLT) - Get Report: DOWN to neutral from buy.
Starwood Hotels and Resorts (HOT) : DOWN to attractive from buy.
MeriStar Hospitality (MHX) : DOWN to attractive from buy.
Extended Stay America (ESA) : DOWN to attractive from buy.
Four Seasons (FS) : DOWN to neutral from attractive.