Basic materials companies are starting to feel the pinch from higher energy prices, and analysts are responding.
After issuing an earnings warning, analysts have lowered earnings estimates on
this morning. DuPont lowered its earnings outlook by 15 to 17 cents per share for 2000, citing higher raw material and energy costs, the weak euro and slowing demand as reasons for its earnings warning. DuPont said it would earn between $2.85 and $2.95 per share in 2000.
Donaldson Lufkin & Jenrette
cut 2001 earnings per share estimates for DuPont to $3.40 from $3.50, and
cut estimates for 2000 and 2001 to $2.90 and $3.35, respectively.
lowered its third quarter-earnings estimates for
to 45 cents a share from 53 cents per share, citing increased oil and gas raw material costs.
raised fiscal 2002 estimate to $1.50 from $1.44.
: UP to strong buy from buy at
Chase Hambrecht & Quist
upped price target to $34 from $30.
: UBS Warburg raised fiscal 2001 earnings per share to $3.17 from $2.81, and fiscal 2002 EPS to $3.52 from $3.20.
Great Atlantic & Pacific
: DOWN to intermediate-term reduce from neutral and long-term neutral from buy at Merrill Lynch.
: DLJ cut 2001 earnings estimates to $1.50 from $1.75 and 2002 estimates to $1.70 from $1.95.
: NEW buy at Chase H&Q.
: NEW buy at Lehman; price target: $210.
: NEW buy at
Credit Suisse First Boston
; price target: $60.
Lehman Brothers upgraded the auto parts sector to neutral from underperform, citing the sector's "absurd" valuation and "stirrings" of financial buyer interest. According to Lehman, the sector's valuation is second-lowest of 104 industry sectors in the
S&P 500 Index
Auto components supplier
was upgraded to a buy from outperform, and Lehman started coverage on
with an outperform rating and
with a neutral rating. The brokerage maintained buy ratings on a number of other companies, including