Morgan Stanley Dean Witter

downgraded

Juniper Networks

(JNPR) - Get Report

and

Redback Networks

(RBAK)

to outperform from strong buy. The firm also cut

Cisco's

(CSCO) - Get Report

price target to $75 from $90.

Also this morning,

Lehman Brothers

cut

eBay

(EBAY) - Get Report

to neutral from buy.

Lehman strategist Jeffrey Applegate came out this morning with a note saying that Lehman is modestly reducing its earnings per share forecast for the

S&P 500

, but leaving its equity returns alone as "valuation has moderately improved." Lehman lowered its EPS growth for the third quarter to 10% from its previous 13% expectation. Lehman cut its forecast for the fourth quarter by 60 cents to $15.05, for growth of 8%. For full-year 2001, Lehman is reducing its EPS forecast to $64 from $67, or 10% growth. These are its estimates for the S&P 500 as a whole, put together as an average.

Applegate said he wasn't changing his firm's expected equity returns as valuation has moderately improved.

Downgrades

Bank of America

(BAC) - Get Report

: fourth-quarter earnings estimate DOWN to $1.13 from $1.33 at

Credit Suisse First Boston

and lowered 2001 earnings estimates to $5.50 from $5.75.

Digex

(DIGX)

: DOWN to buy from strong buy at

Deutsche Banc Alex. Brown

.

Macerich

(MAC) - Get Report

: DOWN to neutral from outperform at Lehman.

Initiations

Heidrick & Struggles

(HSII) - Get Report

: NEW buy at CSFB.