Analyst Actions: DuPont, Dow Chemical, National Semiconductor, Campbell Soup - TheStreet

Analyst Actions: DuPont, Dow Chemical, National Semiconductor, Campbell Soup

Author:
Publish date:

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

DuPont

(DD) - Get Report

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

UBS Warburg

cut estimates for 2000 and 2001 to $2.90 and $3.35, respectively.

PaineWebber

lowered its third quarter-earnings estimates for

Dow Chemical

(DOW) - Get Report

to 45 cents a share from 53 cents per share, citing increased oil and gas raw material costs.

Upgrades

Acxiom

(ACXM)

:

Merrill Lynch

raised fiscal 2002 estimate to $1.50 from $1.44.

King Pharmaceutical

(KG)

: UP to strong buy from buy at

Chase Hambrecht & Quist

.

McKesson HBOC

(MCK) - Get Report

:

Lehman Brothers

upped price target to $34 from $30.

National Semiconductor

(NSM)

: UBS Warburg raised fiscal 2001 earnings per share to $3.17 from $2.81, and fiscal 2002 EPS to $3.52 from $3.20.

Downgrades

Great Atlantic & Pacific

(GAP)

: DOWN to intermediate-term reduce from neutral and long-term neutral from buy at Merrill Lynch.

Campbell Soup

(CPB) - Get Report

: DLJ cut 2001 earnings estimates to $1.50 from $1.75 and 2002 estimates to $1.70 from $1.95.

Initiations

Pharsight

(PHST)

: NEW buy at Chase H&Q.

Aether Systems

(AETH)

: NEW buy at Lehman; price target: $210.

TyCom

(TCM)

: NEW buy at

Credit Suisse First Boston

; price target: $60.

Group Moves

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

Delphi

(DPH)

was upgraded to a buy from outperform, and Lehman started coverage on

Visteon

(VC) - Get Report

with an outperform rating and

ArvinMeritor

(ARM)

with a neutral rating. The brokerage maintained buy ratings on a number of other companies, including

Lear

(LEA) - Get Report

and

Borg Warner

(BWA) - Get Report

.