Intel

(INTC) - Get Report

was cut to buy from strong buy at

U.S. Bancorp Piper Jaffray

by influential analyst Ashok Kumar, who said continued demand weakness would result in lower-than-expected unit growth. Kumar also said the relative strength of the stock has peaked due to weakening fundamentals.

Banc of America

downgraded the drug sector:

  • Merck (NYT) - Get Report: DOWN to market perform from strong buy.

Upgrades

Celestica

(CLS) - Get Report

: price target UP to 100 from 84.

Downgrades

Newport

(NEWP)

: DOWN to outperform from buy at

ABN Amro

.

PSS World Medical

(PSSI)

; price target: down to $5 from $8 at

Lehman Brothers

.

Initiations

H Power

(HPOW)

: NEW buy; price target: $33 at Lehman.

Micron Technology

(MU) - Get Report

TST Recommends

: NEW buy at

SG Cowen

.

Phone.com

(PHCM)

: NEW buy at Lehman Brothers; price target: $120.

Group Moves

Banc of America started coverage of

American Medical

(AMMD)

and

Regeneration Tech

(RTIX) - Get Report

with buy ratings.

SG Cowen initiated coverage of Internet health care companies:

Deutsche Banc Alex. Brown

downgraded newspaper publishers:

  • Gannett (GCI) - Get Report: DOWN to market perform from buy.
  • Knight Ridder (KRI) : DOWN to market perform from buy.
  • New York Times (NYT) - Get Report: DOWN to market perform from buy.
  • Tribune (TRB) : DOWN to market perform from strong buy.

Morgan Stanley Dean Witter

cut transportation companies:

  • J.B. Hunt (JBHT) - Get Report: DOWN to outperform from strong buy.
  • M.S. Carriers (MSCA) : DOWN to outperform from strong buy.
  • Swift Transportation (SWFT) : DOWN to outperform from strong buy.
  • U.S. Xpress (XPRSA) : DOWN to outperform from strong buy.
  • Werner Enterprises (WERN) - Get Report: DOWN to outperform from strong buy.

Deutsche Banc Alex. Brown initiated coverage of Internet content providers:

Credit Suisse First Boston also started McData as a buy and set a 12-month price target.

Merrill Lynch

started McData as near-term accumulate and long-term buy with a 12-month price target of $118.

Deutsche Banc Alex Brown cut ratings for energy companies:

  • Anadarko Petroleum (APC) - Get Report: DOWN to buy from strong buy.
  • Burlington Resources (BR) - Get Report: DOWN to market perform from buy.
  • EOG Resources (EOG) - Get Report: DOWN to market perform from strong buy.
  • Patina Oil & Gas (POG) : DOWN to buy from strong buy.
  • St. Mary Land (MARY) DOWN to market perform from strong buy .
  • Unocal (UCL) DOWN to buy from strong buy.