After

Hewlett-Packard

(HWP)

delivered what looked like a strong third-quarter earnings report

last night, some analysts complained that the company relied too heavily on accounting devices, lower tax rates and unspecified interest income.

Banc of America

cut its rating on the stock to buy from strong buy.

Meanwhile

Lehman Brothers

said the earnings were impressive, despite the investment gains, and said it is "pleased with HP's progress and believes the shares represent an excellent value."

Goldman Sachs

lifted its 2000 EPS view to $3.67 from $3.55.

Merrill Lynch

said it is adding

Mellon Financial

(MEL)

to its focus-on list, and sees a 12-month price target in the high 50's. Merrill said Mellon continues to have an improving earnings mix increasingly skewed toward high-value fiduciary business.

Upgrades

Kansas City Southern Industries

(KSU) - Get Kansas City Southern (KSU) Report

: UP to strong buy from hold at

Credit Suisse First Boston

.

Matav

(MTA)

: UP to add from sell at

Dresdner Kleinwort Benson

; price target: 36.

Reliant Energy

(REI) - Get Ring Energy, Inc. Report

TheStreet Recommends

: UP to buy from hold at

UBS Warburg

.12 to 18 month price target UP to 48 from 35.

Philips Electronics

(PHG) - Get Koninklijke Philips N.V. Sponsored ADR Report

: 2000 and 2001 EPS and price target UP at

Deutsche Banc

.

Downgrades

Ross Stores

(ROST) - Get Ross Stores, Inc. Report

: DOWN to hold from buy at CSFB.

Initiations

ACT Manufacturing

(ACTM)

: coverage REINSTATED with a strong buy at CSFB; price target: 70 to 73.

Lone Star Technologies

(LSS)

: NEW buy at Banc of America.

Pac-West Telecom

(PACW) - Get PacWest Bancorp Report

: NEW buy at UBS Warburg; price target: 27.

C.H. Robinson Worldwide

(CHRW) - Get C.H. Robinson Worldwide, Inc. Report

: NEW buy at UBS Warburg.

Ryder System

(R) - Get Ryder System, Inc. Report

: NEW buy at UBS Warburg.

Spinnaker Exploration

(SKE)

: coverage REINSTATED at CSFB.