(Updated from 9:54 a.m. EDT)

Donaldson Lufkin & Jenrette

cut

United Airlines

parent

UAL

(UAL) - Get Report

to underperform from buy, citing hurdles to its planned takeover of

US Airways

(U) - Get Report

.

In response to the merger,

Merrill Lynch

airline analyst Candace Browning downgraded

American Airlines

parent

AMR

(AMR)

, to accumulate saying the merger, "would significantly shift market share; AMR and United today each have an 18% market share, but if the deal is successful, United's market share will jump to 26%, by far the highest of any carrier." DLJ also cut AMR, to market perform from buy.

Meanwhile, Browning upgraded

Northwest Airlines

(NWAC)

to accumulate/buy from neutral/accumulate saying the transaction is likely to set off a wave of consolidation in the industry. Merrill reiterated a positive stance on the airline sector, calling it undervalued.

UBS Warburg

said it suspended its strong buy rating and price target on

Young & Rubicam

(YNR)

.

Upgrades

Bank of New York

(BK) - Get Report

: price target UP to 56 from 46 at UBS Warburg.

Genesco

(GCO) - Get Report

: UP to market outperformer from market performer at

Goldman Sachs

.

KLM Royal Dutch Airlines

(KLM)

: UP to buy at

Credit Suisse First Boston

.

Nextel

(NXTL)

: UP to hold from underperform at

ABN Amro

, price target: 80.

Tidewater

(TDW) - Get Report

: UP to outperform at

Salomon Smith Barney

; price target: 44; 2002 EPS estimate up to $2.30 from $2.10.

Downgrades

Black & Decker

(BDK)

: DOWN to neutral from outperform at Salomon Smith Barney

Costco

(COST) - Get Report

: DOWN to hold from outperform at

Lazard Freres

; down to neutral from strong buy at Morgan Stanley Dean Witter; down to accumulate from buy at Merrill Lynch.

Gerald Stevens

(GIFT)

: DOWN to neutral/neutral from accumulate/buy.

Mead

(MEA)

: DOWN to market perform from buy at

Deutsche Banc Alex. Brown

.

Pacific Gateway Exchange

(PGEX)

: DOWN to neutral from outperform at

Morgan Stanley Dean Witter

; 2000 earnings estimate DOWN to a loss of $1.79 a share from a profit of 19 cents at Goldman Sachs.

Initiations

Archer Daniels Midland

(ADM) - Get Report

: NEW buy at Salomon Smith Barney.

Illinois Tool Works

(ITW) - Get Report

: NEW buy at CSFB; price target: 85.

MAF Bancorp

(MAFB)

: NEW neutral at

Lehman Brothers

.