Goldman Sachs

analyst Rick Sherlund, this morning, reiterated his market outperform rating on

Microsoft

(MSFT) - Get Microsoft Corporation (MSFT) Report

.

In his report, Sherlund noted that the software giant does not have plans to preannounce results "as business appears to be tracking in line with expectations." Microsoft, Sherlund said, "remains comfortable with our revenue and earnings per share estimates of $5.65 billion and 41 cents for the September quarter."

Upgrades

Flextronics

(FLEX) - Get Flex Ltd. Report

: fiscal 2001 EPS UP $1.82 a share from $1.65 at

Donaldson Lufkin & Jenrette

; fiscal 2002 EPS UP to $2.50 a share from $2.20; price target UP to 115 from 100.

Lennar

(LEN) - Get Lennar Corporation Class A Report

: fiscal 2000 EPS estimates UP to $3.25 from $3.10 a share; fiscal 2001 EPS UP to $3.70 a share from $3.15 a share at

Credit Suisse First Boston

.

Downgrades

Bristol-Myers Squibb

(BMY) - Get Bristol-Myers Squibb Company Report

: fiscal 2000 EPS DOWN to $2.32; fiscal 2001 EPS DOWN to $2.55 at Credit Suisse First Boston.

Capital One Financial

(COF) - Get Capital One Financial Corporation Report

: price target UP to 85 from 60 at Credit Suisse First Boston.

Corillian

(CORI) - Get Corium International, Inc. Report

: 2000 earnings estimate DOWN to a 61 cent loss from a 51 cent loss at Credit Suisse First Boston. 2001 earnings estimate DOWN to 93 cent loss from an 87 cent loss.

Covenant Transport

(CVTI) - Get Covenant Transportation Group, Inc. Class A Report

TheStreet Recommends

: third-quarter EPS DOWN to 30 cents from 42 cents a share; fiscal 2000 DOWN to $1 from $1.12; fiscal 2001 DOWN to $1.15 a share from $1.40 at Credit Suisse First Boston.

Delta Air Lines

(DAL) - Get Delta Air Lines, Inc. Report

: 2000 earnings per share DOWN to $7.40 from $7.80 at Goldman Sachs.

Immersion

(IMMR) - Get Immersion Corporation Report

: price target DOWN to 50 to 45 from 64 to 66 at

Bear Stearns

; fiscal 2000 EPS DOWN to a loss of $1.04 from a loss of 54 cents; fiscal 2001 EPS DOWN to a 68-cent loss from a 5-cent profit; fiscal 2002 EPS DOWN to an 8-cent profit from an 85-cent profit.

Initiations

AvalonBay

(AVB) - Get AvalonBay Communities, Inc. Report

: NEW outperform at Lehman Brothers; price target of $52.

O2Micro International

(OIIM) - Get O2Micro International Limited Sponsored ADR Report

: NEW buy at

US Bancorp/Piper Jaffray

.

OSI Pharmaceuticals

( OSIP): NEW outperform at Lehman Brothers. 12-month price target: $70.

Pentair

(PNR) - Get Pentair plc Report

: fiscal 2000 EPS DOWN to $2.40 a share from $3.25 a share at Credit Suisse First Boston; fiscal 2001 EPS DOWN to $3.50 a share from $4.05.

Group Moves

Lehman Brothers sliced its rating on two semiconductor related stocks:

  • Speedfam-IPEC (SFAM) : DOWN to neutral from buy
  • PRI Automation( PRIA): DOWN to outperform from buy.

Deutsche Banc Alex. Brown

lowered its ratings on three Web retailers to buy from strong buy:

  • Ashford.com( ASFD)
  • Autobytel (ABTL)
  • WebVan (WBVN)