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Analyst Actions: Intel, Lucent, Phamacia, Comerica

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Credit Suisse First Boston

adjusted its outlook on a number of semiconductor companies this morning, reflecting the anticipation of slowing demand in the first half of next year.

CSFB analyst Charlie Glavin lowered estimates on

Intel

(INTC)

, citing PC pricing pressures and declining demand. He dropped his 2001 earnings estimate to $1.66 a share from $1.75, on revised revenue estimates of $37.6 billion from $39.3 billion, but maintained a buy rating.

Fellow CSFB analyst John Pitzer lowered earnings estimates for several companies in the semiconductor capital equipment sector, reflecting difficulties likely to show up in the next seven months. Estimates were dropped for

KLA-Tencor

(KLAC)

,

Applied Materials

(AMAT)

,

Lam Research

(LRCX)

and

Novellus

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. "The trough revenue quarter will probably occur in the June/July timeframe; that peak-to-trough revenue decline should be 15-20%," Pitzer wrote this morning.

Analysts at

UBS Warburg

downgraded

Pharmacia

(PHA)

and

Schering-Plough

(SGP)

on valuation concerns this morning. The brokerage said the stock prices might be overvalued now.

Meanwhile, in a raging case of "Where the heck have you been?" UBS Warburg removed, along with Parmacia,

Lucent Technologies

(LU)

from its highlight list. This is the same Lucent that's dropped $54.96 this year, losing 78% of its value. Yeah, it should probably be off the highlight list.

Upgrades

China Mobile

(CHL)

: UP to buy from accumulate at

Merrill Lynch

.

Comerica

(CMA)

: UP to buy from outperform at

Lehman Brothers

.

Jabil Circuit

(JBL)

: UP to strong buy from buy at Credit Suisse First Boston.

Downgrades

BroadVision

(BVSN)

: DOWN to buy from strong buy at Credit Suisse First Boston.

Ann Taylor

(ANN)

: DOWN to buy from strong buy at Credit Suisse First Boston.

Group Moves

Credit Suisse First Boston cut ratings on a number of diversified manufacturing companies:

  • Gencorp (GY) : DOWN to hold from buy.
  • Illinois Tool Works (ITW) : DOWN to hold from buy.
  • Textron (TXT) : DOWN to hold from buy.