Analyst Actions: UAL, AMR, NWAC, KLM, YNR, BK, NXTL, PGEX, More
(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
.
