Skip to main content

Forget tomorrow. The Sun is coming out today.

Steve Milunovich,

Merrill Lynch

analyst, took the recently destroyed

Sun Microsystems

(SUNW) - Get Sunworks, Inc. Report

out of his "techfolio," a collection of 10 technology stocks that launched on Oct. 24. Milunovich will cut both Sun and


(PVTL) - Get Pivotal Software, Inc. Class A Report

from the techfolio, replacing them with


(AVT) - Get Avnet, Inc. Report


Texas Instruments

(TXN) - Get Texas Instruments Incorporated Report


Scroll to Continue

TheStreet Recommends

"Sun has been acting poorly," Merrill's analyst wrote in a note to investors this morning. "Although we have confidence in the company's accounting and long-term prospects, the concerns could prevent a near-term rally. We're adding Avnet. Although the stock has a lower beta, we think the stock could appreciate to fill the price gap."

And as to why Pivotal couldn't live up to its name?

"Pivotal is on our restricted list," Milunovich wrote. "Although we are underweighting semis, the group does appear to be poised for a rebound and should do well in an up tech tape. TI is a leader in wireless, which looks to be recovering."




: DOWN to hold from buy at

Credit Suisse First Boston

; DOWN to hold from buy at

UBS Warburg




: DOWN to buy from strong buy at UBS Warburg.



: DOWN to buy from strong buy at UBS Warburg.



: DOWN to hold at CSFB.



: DOWN to hold from buy at CSFB.




: NEW outperform at

Lehman Brothers


Centura Bank


: NEW neutral at Merrill.

Commerce One


: NEW outperform at Lehman Brothers; price target: $55.



: NEW buy at UBS Warburg.

Fresenius Medical Care

(FMS) - Get Fresenius Medical Care AG & Co. KGaA Report

: NEW buy at UBS Warburg.



: NEW buy at UBS Warburg.



: NEW buy at UBS Warburg.

Smith & Nephew


: NEW buy at Merrill; price target: $54.

Group Moves

Lehman Brothers initiated coverage on a bunch of clothiers, just prior to the all-important holiday season. Even if you're unaware that Christmas carols have been playing since early October, it's still beginning to look a lot like Christmas. Everywhere you go. Even on Wall Street. Lehman started the following companies at outperform:

  • The Gap (GPS) - Get Gap, Inc. Report: price target $35.
  • Intimate Brands (IBI) : price target $21.
  • The Limited (LTD) : price target $26.
  • Talbot's (TLB) : price target $55.