Credit Suisse First Boston
slashed its ratings on four web consulting companies this morning, for pretty obvious reasons -- there isn't enough money to go around anymore to build out various Internet-related concerns.
The company cut its ratings to buy from strong buy on
Sapient
(SAPE)
;
Razorfish
(RAZF)
,
Eloyalty
(ELOY)
, and
marchFirst
(MRCH)
.
MarchFirst missed estimates
by a mile when it reported third-quarter earnings Tuesday, and the stock was roundly destroyed in trading this week. All of these stocks are way, way off their 52-week highs, and all but Sapient already trade in the single digits. "The downgrades imply a scenario of 'dead money,' rather than significant downside price risk, through the remainder of the year for these already-washed out names," the company said.
Upgrades
JDS Uniphase
(JDSU)
:
W.R. Hambrecht
upped price target to $180 from $140; raised fiscal 2001 earnings per share estimates to 80 cents from 69 cents. CSFB upped 2001 estimates to 80 cents from 69 cents; 2002 estimates to $1.10 from $1.00.
Trico Marine
(TMAR)
: UP to strong buy from hold at
ING Barings
.
Beverly Enterprises
(BEV)
: UP to buy from hold at ING Barings.
American General
(AMG) - Get Report
: UP to strong buy from buy at
UBS Warburg
.
Varian Semiconductor
(VSEA)
: UP to strong buy from buy at UBS Warburg.
Downgrades
Transactions Systems Architects
(TSAI)
: DOWN to buy from strong buy at CSFB.
Worldcom
(WCOM)
: DOWN to hold from strong buy at ING Barings.
CTC Communications
(CPTL)
: DOWN to buy from strong buy at ING Barings.
American Home Products
(AHP)
: DOWN to neutral from outperform at
Salomon Smith Barney
.
Initiations
Lincoln National
(LNC) - Get Report
: NEW hold at UBS Warburg.
