SG Cowen

downgraded

Microsoft

(MSFT) - Get Report

to neutral from buy after the company posted second-quarter earnings of 37 cents per share on Tuesday, two cents above consensus estimates. Meantime,

Lehman Brothers

reiterated its existing buy recommendation on the company.

Merrill Lynch

cut its rating on

Tricon Global

(YUM) - Get Report

to intermediate, long-term accumulate from buy and cut its fiscal 2000 EPS estimates to $2.95 a share from $3.25. Merrill also lowered its fiscal 2001 estimates to $3.35 from $3.70.

Yesterday, Tricon Global posted second-quarter earnings of 76 cents a share, topping the analyst estimate of 71 cents and up from the year-ago 60-cent profit, but cut its full-year earnings outlook because of weakness at

Taco Bell

.

Upgrades

Associates First Capital

(AFS)

: UP to near-term buy from accumulate at Merrill Lynch.

Parametric Technology

(PMTC)

: UP to intermediate-term accumulate from neutral at Merrill Lynch.

Downgrades

Bausch & Lomb

(BOL)

: DOWN to buy from strong buy at

Deutsch Banc Alex. Brown

.

Boston Scientifics

(BSX) - Get Report

: DOWN to market perform from buy at DB Alex Brown.

Charter One Financial

(CF) - Get Report

: DOWN to neutral from outperform at

Morgan Stanley Dean Witter

.

Compuware

(CPWR)

: DOWN to market performer from outperformer at

Goldman Sachs

.

DoubleClick

(DCLK)

: third-quarter revenue DOWN to $137.9 million from $147.6 million at

Credit Suisse First Boston

.

Newport News Shipbuilding

(NNS)

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

Initiations

Accelerated Networks

(ACCL)

: INITIATED buy at

UBS Warburg

. Price target: 84.

DigitalThink

(DTHK)

: NEW market performer at Goldman Sachs.

MarchFirst

(MRCH)

: NEW intermediate, long-term buy at Merrill Lynch.

Osca

(OSCA)

: NEW outperform at Morgan Stanley. 12-month price-target: 28.

Pitney Bowes

(PBI) - Get Report

: NEW hold at Credit Suisse First Boston.

Sylvan Learning

(SLVN)

: NEW market performer at Goldman Sachs.

Group Moves

Donaldson Lufkin & Jenrette

changed estimates on two airlines:

  • America West (AWA) : fiscal 2000 EPS estimates DOWN to $1.80 a share from $2.25 a share.
  • SouthWest (LUV) - Get Report: fiscal 2000 EPS UP to $1.30 a share from $1.05.