Banc of America Securities downgraded Gateway (GTW) this morning to buy from strong buy after the company posted second-quarter earnings of 37 cents per share yesterday, a penny above consensus estimates. Banc of America analysts said the computer maker's stock "isn't cheap" following a pre-earnings run-up. Several other analysts have reiterated existing recommendations on the company this morning.

Upgrades

Brocade

(BRCD)

: Price target UP to 250 from 175 at

Bear Stearns

.

Allegheny Energy

(AYE)

: UP to recommended list from market outperformer at

Goldman Sachs

; raised 2001 earnings estimates to $3.20 from $3.15 a share.

J.P. Morgan

(JPM) - Get Report

: UP to short-term buy from short-term accumulate at

Merrill Lynch

.

Pepsi Bottling Group

(PBG)

: Merrill Lynch raised 2000 earnings-per-share estimates to $1.50 from $1.35-$1.40; raised 2001 estimates to $1.75 from $1.70.

Pivotal

(PVTL) - Get Report

: UP to buy from accumulate at Merrill Lynch; price target: 70.

Downgrades

Dow Jones

(DJ)

: DOWN to market outperformer from recommened list at Goldman Sachs.

Initiations

Tibco Software

(TIBX)

: NEW strong buy at

Prudential Securities

; price target: 155.

eBay

(EBAY) - Get Report

: NEW strong buy at

Credit Suisse First Boston

; price target: 72.

Priceline.com

(PCLN)

: NEW buy at Credit Suisse First Boston; price target: 45.

Charles River Laboratories

(CRL) - Get Report

: NEW buy at

ING Barings

; price target: 38.

Group Moves

WR Hambrecht

initiated coverage of several Internet and Open Source-related companies:

  • Cobalt Networks (COBT) , strong buy, price target: 70
  • Red Hat (RHAT) , buy, price target: 40
  • VA Linux Systems (LNUX) , buy, no target
  • WindRiver Systems (WIND) , buy, price target: 45

UBS Warburg

initiated coverage of several household products stocks: