Yahoo! (YHOO) was downgraded by Deutsche Banc Alex. Brown this morning. Andrea Williams Rice, the analyst there, cited a pullback in dot-com spending, noting that most of the advertising on Web sites still comes from other Web sites. She also downgraded several other Net companies (see below).
"With access to public and private capital nearly nonexistent, the likelihood of revenue shortfalls from those who rely on these companies is quite high," she wrote, adding that Yahoo! is likely to see fewer revenues than it expects over coming quarters.
Upgrades
PeopleSoft
(PSFT)
: UP to outperform from neutral at
Lehman Brothers
.
Starbucks
(SBUX) - Get Report
:
Chase Hambrecht & Quist
raised its price target to 46 from 38.
Trigon Healthcare
(TGH) - Get Report
: Deutsche Banc Alex. Brown raised its price target to 65 from 54; upped 2000 earnings estimates to $3.07 a share from $3.05 a share, and 2001 estimates to $3.59 from $3.57.
Core Laboratories
(CLB) - Get Report
: UP to strong buy from buy at
Credit Suisse First Boston
.
Dura Pharmaceuticals
(DURA) - Get Report
: UP to accumulate from neutral at
Merrill Lynch
.
Downgrades
PepsiCo
(PEP) - Get Report
: DOWN to outperform from buy at
Salomon Smith Barney
. Salomon, however, raised earnings estimates for the company, to $1.40 a share from $1.39 for 2000, and $1.59 from $1.55 for 2001. It also upped its price target to 50 from 45. The downgrade was undertaken because Pepsi's shares have risen 25% this year, and said the earnings multiple is already too high.
BMC Software
(BMCS)
: DOWN to buy from strong buy at Credit Suisse First Boston after the company's Wednesday earnings warning.
Forest Labs
(FRX)
: DOWN to accumulate from buy at Merrill Lynch.
Mentor
(MNTR)
: DOWN to hold from strong buy at
CIBC World Markets
after Mentor warned of lower-than-expected first quarter earnings.
Initiations
Navigant International
(FLYR)
: NEW buy at Lehman Brothers; price target: 16.
Group Moves
Deutche Banc Alex. Brown downgraded several Internet companies:
- FairMarket (FAIM) was dropped to buy from strong buy;
Safeguard Scientifics (SFE) - Get Report was dropped to buy from strong buy, and
TMP Worldwide (TMPW) to buy from strong buy.
HotJobs.com (HOTJ) has been upped to strong buy from buy.
Banc of America Securities
initiated coverage of several technology and semiconductor stocks:
- Asyst Tech (ASYT) ,
Applied Materials (AMAT) - Get Report,
Brooks Automation (BRKS) - Get Report,
Credence (CMOS) ,
KLA-Tencor (KLAC) - Get Report,
LAM Research (LRCX) - Get Report,
Novellus Systems (NVLS) ,
PRI Automation (PRIA) , and
Teradyne (TER) - Get Report, were all given buy ratings.
Jefferies & Co.
initiated coverage of several Internet commerce and content providers:
