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

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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 Report

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

Hasbro

(HAS) - Get 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 Report

: UP to strong buy from outperform at

Morgan Stanley Dean Witter

.

Mattel

(MAT) - Get Report

: UP to buy from accumulate at

Merrill Lynch

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

New York Times

(NYT) - Get 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

(BAC) - Get 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 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 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 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 Report: 2001 EPS estimate DOWN to $2.60 from $2.65.

Lehman downgraded auto-parts makers

American Axle & Manufacturing Holdings

(AXL) - Get 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: