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Analyst Actions: Hewlett-Packard, Microsoft, Hasbro, Bank of America

Author:

This morning,

Bear Stearns

cut

Hewlett-Packard's

(HWP)

2001 EPS estimate to $1.80 from $1.95 and downgraded the stock to neutral from attractive because of concerns about the industry. And

Goldman Sachs

lowered 2001 EPS estimates for

Microsoft

(MSFT) - Get Microsoft Corporation (MSFT) Report

to $1.88 from $1.91 because of sluggish PC sales.

Hasbro

(HAS) - Get Hasbro, Inc. (HAS) Report

got hit hard by

Lehman Brothers

. The company warned last night after the close that it earnings for its fourth quarter and full year would fall well below estimates. Lehman, in turn, cut its fourth-quarter EPS view to a loss of 37 cents from earnings of 20 cents a share. It also slashed 2000 EPS estimates to a loss of 15 cents a share from earnings of 40 cents.

Upgrades

Comverse Technology

(CMVT)

: 2000 EPS forecast UP to $1.45 from $1.40 at

US Bancorp Piper Jaffray

; 2001 EPS estimate UP to $1.77 from $1.70 and 2002 EPS UP to $2.12 from $2.04

Dril-Quip

(DRQ) - Get Dril-Quip, Inc. Report

: UP to strong buy from outperform at

Morgan Stanley Dean Witter

.

Mattel

(MAT) - Get Mattel, Inc. Report

: UP to buy from accumulate at

Merrill Lynch

; and 12-month price target UP to $18.

New York Times

(NYT) - Get New York Times Company Class A Report

: UP to outperform from neutral at

Salomon Smith Barney

.

Southern Energy

(SOE)

: UP to strong buy from buy at

Banc of America

.

Downgrades

Bank of America

TheStreet Recommends

(BAC) - Get Bank of America Corp Report

: 2000 EPS view DOWN to $4.74 from $5.20 at

Prudential Securities

, and 2001EPS view DOWN to $5 from $5.82. It was also downgraded to outperform from buy at Lehman.

Breakaway Solutions

(BWAY) - Get Brainsway Ltd Sponsored ADR Report

: DOWN to neutral from outperform at Morgan Stanley.

Razorfish

(RAZF)

: DOWN to neutral from outperform at Morgan Stanley.

Scient

(SCNT)

: DOWN to neutral from outperform at Morgan Stanley.

Solectron

(SLR)

: DOWN to hold from buy at

UBS Warburg

and its 12-month price target down to $32 from $63.

Visteon

(VC) - Get Visteon Corporation Report

: DOWN to market perform from long-term buy at

J.P. Morgan

. The firm also cut its 2001 EPS view to $1.35 from $3.15 and 2002 EPS to $1.80 from $3.40.

Initiations

Alcoa

(AA) - Get Alcoa Corp. Report

: NEW long-term buy at J.P. Morgan; and 12-month price target: $38.

Ariba

(ARBA)

was started at Goldman Sachs as an addition to its recommended-for-purchase list.

Group Moves

Credit Suisse First Boston

lowered 2001 estimates on companies in the imaging sector:

  • Eastman Kodak (EK) : 2001 EPS estimate DOWN to $5.10 from $5.40.
  • Polaroid (PRD) : 2001 EPS estimate DOWN to $1.40 from $1.60.
  • Lexmark (LXK) : 2001 EPS estimate DOWN to $2.60 from $2.65.
  • Pitney Bowes (PBI) - Get Pitney Bowes Inc. Report: 2001 EPS estimate DOWN to $2.60 from $2.65.

Lehman downgraded auto-parts makers

American Axle & Manufacturing Holdings

(AXL) - Get American Axle & Manufacturing Holdings, Inc. Report

and

Delphi Automotive Systems

(DPH)

to outperform from buy.

ABN Amro

started coverage on specialty chemical companies, rating the following as the best buys in the industry: