Lehman Brothers this morning initiated coverage of the PC and semiconductor industry. The initiations come after analyst Dan Niles, late of Robertson Stephens, last week joined the firm. Compaq (CPQ) , Dell (DELL) - Get Report and Micron Technology (MUEI) were launched with buy ratings; Advanced Micro Devices (AMD) - Get Report and Gateway (GTW) were launched with outperform ratings and Apple Computer (AAPL) - Get Report was launched with a neutral rating.

Goldman Sachs

downgraded the shares of

Office Depot

(ODP) - Get Report

to market performer from outperform.

Merrill Lynch

also downgraded the stock to long-term accumulate from long-term buy.

Upgrades

eSpeed

(ESPD)

: UP to strong buy from buy at

Chase Hambrecht & Quist

.

Mastec

(MTZ) - Get Report

: UP to strong buy from buy at

Banc of America

.

Starwood Hotels

(HOT)

: UP to market outperform from market perform at Goldman Sachs.

Downgrades

American Freightways

(AFWY)

: DOWN to hold from buy at

Credit Suisse First Boston

.

Initiations

Crown Media

(CRWN)

: NEW buy at Salomon Smith Barney; price target: 20.

Orchid Biosciences

(ORCH)

: NEW buy at CSFB; price target: 30.

Sonic Innovations

(SNCI)

: NEW buy at

DB Alex. Brown

.

StarMedia Networks

(STRM) - Get Report

: NEW buy at CSFB; price target: 29.

ViroLogic

(VLGC)

: NEW strong buy at

CIBC Oppenheimer

; price target: 17.

Group Moves

Morgan Stanley Dean Witter

upgraded three communication companies this morning:

  • Acme Communications (ACME) : UP to strong buy from outperform.
  • Comcast (CMCSA) - Get Report: UP to strong buy from outperform.
  • Cox Communications (COX) : UP to outperform from neutral.