TheStreet Notes: A Daily Briefing of Wall Street Resarch and Analyst Actions - TheStreet

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Second Edition

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Allegiance Telecom (ALGX / Nasdaq)
Deutsche Banc Alex Brown
Initiating coverage with a Market Perform rating and $9 price target. The compnay has no immediate funding needs, and we project positive EBITDA by the end of 2002.

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Broadwing (BRW / NYSE)
Deutsche Banc Alex Brown
Initiating coverage with a Market Perform rating and $9 price target. We believe the company will be a survivor of the impending ILEC shake-out.

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CACI International (CACI / Nasdaq)
Piper Jaffray
Upgrade from Outperform to Strong Buy and raising target from $35 to $49. Traded off 12% yesterday due to profit taking. Fundamentals intact.

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DoubleClick (DCLK / Nasdaq)
NEWS
reported a fourth quarter pro forma profit of 1c/share, well above the Street consensus, calling for a loss of 5c/share. In the same period last year, the company posted break-even results.

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DoubleClick (DCLK / Nasdaq)
Salomon Smith Barney
Reported EPS of -25c vs -30c estimates. 2002 guidance does not carry momentum forward and is conservative. Reiterate Neutral. Target raised from $8 to $12.

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DoubleClick (DCLK / Nasdaq)
Lehman Bros
Upgrading to a Buy from Market Perform with a $15 price target. Yesterday, DCLK reported better than expected earnings for the fourth quarter beating consensus by $0.06 per share. Solid traction with new initiatives should allow DCLK to outperform industry growth.

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Eastman Chemical Company (EMN / NYSE)
Deutsche Banc Alex Brown
Lowering fourth quarter estimate to a loss of $0.16 per share, to reflect another earnings warning from management. Our Buy rating and price target are currently under review.

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Eastman Chemical Company (EMN / NYSE)
Lehman Bros
Lowering fourth quarter EPS to $(0.16) as evidence that fundamentals in the chemical industry remain extremely weak, especially in December.

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Eastman Chemical Company (EMN / NYSE)
Salomon Smith Barney
Downgrading from Outperform to Neutral. Preannounced for second time in quarter, citing weaker than expected demand and pricing pressure. Lowering target from $42 to $38.

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FedEx Corporation (FDX / NYSE)
ABN Amro
Upgrading from HOLD to ADD and establishing a $60 pricetarget. FDX's stock has given up ground over the past week, falling more than 10% as investors appear to be worried over the near-term economic outlook.

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Intel Corporation (INTC / Nasdaq)
Bank of America Montgomery
Raising EPS estimates to $0.69 in fiscal 2002 and $1.07 for next year. We believe the company will be able to keep its gross margin above 50%. Reiterate Buy rating and $40 price target.

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Intel Corporation (INTC / Nasdaq)
Goldman Sachs
Reported 4Q EPS of 15c vs. 11c with big gross margin upside. Building capacity. Providing conservative guidance. Reiterate Recommeded List rating and would buy now.

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Intel Corporation (INTC / Nasdaq)
ABN Amro
Raising 2002 EPS estimate from $0.60 to $0.65 and 2003 from$0.80 to $0.85 after 4Q earnings came in ahead of expectations. Note that all the surprise was on the cost side and INTC is roughly one quarter ahead of our previous assumptions on costs. We maintain our HOLD rating and continue to believe it's fairly valued in the low $20s.

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Intel Corporation (INTC / Nasdaq)
NEWS
reported fourth quarter earnings of 15c/share, above the Street estimate of 11c/share, but shy of the 38c/share in the same period last year. Revenues were $6.98 billion, compared to $8.70 billion a year ago.

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Intel Corporation (INTC / Nasdaq)
SG Cowen
Maintain Neutral rating, as we believe the stock is very overpriced at 53 times our 2002 earnings estimate.

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Intel Corporation (INTC / Nasdaq)
Credit Suisse First Boston
Upgrading to a Buy with a $39 price target based on cap-ex and headcount cuts that better position Intel for upgrade cycle and 300mm in 2003. Expect ASPs will be the big margin driver in 2002. INTC is counting on lower desktop ASPs to be offset by higher sales from laptops and servers.

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Juniper Networks (JNPR / Nasdaq)
NEWS
reported in-line earnings of 5c/share for the fourth quarter. Net revenues for the fourth quarter were $151.0 million, compared with $201.7 million for the third quarter, a decrease of 25%.

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Juniper Networks (JNPR / Nasdaq)
Dain Rauscher
Remain cautious and maintain our Sector Perform-Above Averagerating and price target of $20. Reported fourth-quarter revenues and EPS in line with its preannouncement. Asia was surprisingly weak while service-providers in NA were cautious.

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Juniper Networks (JNPR / Nasdaq)
Robertson Stephens
Downgrade from Strong Buy to Buy. Reports Dec. quarter at low end of pre-announced expectations. Lack of visibility. Encouraged by positive return on capital. Target $20.

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Juniper Networks (JNPR / Nasdaq)
Warburg Dillon Read
Lowering estimates to $0.21 per share in fiscal 2002 and $0.43 for next year. International sales have dropped off significantly in recent months. Maintain Hold rating.

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Juniper Networks (JNPR / Nasdaq)
SG Cowen
Lowering estimates to reflect the company's new guidance. We believe the company lost 3-6% market share to CSCO during the quarter, despite adding 10 new customers.

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Alliant Energy Corp. (LNT / NYSE)
Morgan Stanley Co.
Initiating coverage with a Neutral rating. We believe the shares are fully valued, given mid single-digit annual EPS growth expectations.

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Mellon Financial Corp. (MEL / NYSE)
Salomon Smith Barney
Downgrade from Buy to Outperform. Reported in-line results after excluding writedowns. Raising target from $40 to $43. Lowering 2002 EPS from $2.10 to $2.05.

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MetaSolv (MSLV / Nasdaq)
Robertson Stephens
Downgrade from Outperform to Neutral. Significant rebound from low after 9/11, exceeding the rebound in the NASDAQ composite. Captial crunch provides challenges near term. Longer-term concerns about rising competition. Target $8.

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Scientific-Atlanta (SFA / NYSE)
Deutsche Banc Alex Brown
Lowering fiscal 2002 estimates to $0.88 per share on $1.62 billion of revenue. We believe digital cable will add fewer subscribers than expected, and that the stock could trade below $20. Maintain Market Perform rating.

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Scientific-Atlanta (SFA / NYSE)
Merrill Lynch
Downgrading from Strong Buy to Buy, with a $30 price target. We expect new cable subscriber growth to slow down, which is being compounded by competitive pricing for set-top boxes.

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Scientific-Atlanta (SFA / NYSE)
Morgan Stanley Co.
We believe the company could beat estimates for the current quarter, as the business appears to be stabilizing. Maintain Neutral rating.

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Station Casinos (STN / NYSE)
Robertson Stephens
Upgrade from Neutral to Strong Buy. Reversal to disappointing results should occur in next 12 months. Raising target from $14 to $19.50 and 2002 EPS from 40c to 50c.

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TPG N.V. (TP / NYSE)
Bear Stearns
Upgrading from Neutral to buy.

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Time Warner Telecom (TWTC / Nasdaq)
Deutsche Banc Alex Brown
Initiating coverage with a Market Perform rating and $15 price target.

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U.S. Bancorp (USB / NYSE)
Salomon Smith Barney
Downgrade from Buy to Outperform. Reported in-line fourth quarter results. Raising target from $22 to $23. Lowering 2002 EPS from $1.95 to $1.85.

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Williams Communications (WCG / NYSE)
Deutsche Banc Alex Brown
Initiating coverage with a Market Perform rating and $2 price target. We believe the company's recent financing deals provide sufficient liquidity into 2003.

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Amgen (AMGN / Nasdaq)
JP Morgan Chase & Co.
Expect short-term strength based on strong Q4 and short term catalysts. Raising Q4E from $0.31 to $0.32, Street is $0.31, 01E from $1.19 to $1.20, 02E 1.72, due to increase in our Neupogen and Royalty estimates.

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AmSouth Bancorporation (ASO / NYSE)
Lehman Bros
Increasing price target and 2002 EPS estimates to $21 and $1.70, reflecting from a higher net interest margin assumption. Given the relative valuation and 4.5% dividend yield, we are comfortable in maintaining a Market Perform rating, however would like to see a resumption of commercial loan growth.

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American Axle & Manufact. (AXL / NYSE)
Lehman Bros
Upping fourth quarter and 2002 EPS estimates to $0.45 and $2.45, as we expect AXL to benefit handsomely from robust GM light truck production.

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C-COR.net Corporation (CCBL / Nasdaq)
Warburg Dillon Read
Raising price target to $19 per share, as we believe the consensus estimates are too conservative. The company should benefit from increased spending by AT&T Broadband and Time Warner Cable. Reiterate Buy rating.

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Check Point Software Tech (CHKP / Nasdaq)
Deutsche Banc Alex Brown
Lowering 2002 EPS estimate to $1.28, as we believe security spending budgets may contract with the economy. Maintain Buy rating.

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Check Point Software Tech (CHKP / Nasdaq)
Warburg Dillon Read
Trimming estimates and price target to $52 per share, as the company's order backlog looks weak. We now expect the company to earn $1.30 in fiscal 2002. Maintain Buy rating.

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C.H. Robinson Worldwide (CHRW / Nasdaq)
Deutsche Banc Alex Brown
Raising estimates to $1.09 per share in 2002 and $1.28 for next year, to reflect a recent accretive acquisition. Reiterate Buy rating and $32 price target.

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Capital One Financial (COF / NYSE)
NEWS
reported fourth quarter earnings of 80c/share, matching the Street forecast, and surpassing the 61c/share in the same period last year.

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Capital One Financial (COF / NYSE)
Prudential Securities
encouraged by progress since guiding '02 ests. lower in Oct. and we have increased confidence in management's 20% EPS growth goal. We are raising our '02 EPS est. by $0.10 to $3.50 and upping our 12-month price target to $65 from $55.

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Rockwell Collins (COL / NYSE)
SG Cowen
The company surprised with profits in the latest quarter of $0.26 per share. We expect the raise full-year numbers after this morning's conference call. Maintain Buy rating.

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eBay (EBAY / Nasdaq)
Deutsche Banc Alex Brown
Reiterate Buy rating, as we expect profit-taking after yesterday's strong fourth quarter earnings report.

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eBay (EBAY / Nasdaq)
NEWS
reported fourth quarter pro forma earnings of 14c/share, a penny ahead of the Street forecast, and well above the 9c/share in the same period last year.

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eBay (EBAY / Nasdaq)
Prudential Securities
Recommend investors to use this sell-off as a buying opportunity. Reiterate our Buy rating (Top Idea) and raise our price target to $77 from $75.

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eBay (EBAY / Nasdaq)
Goldman Sachs
Reiterate Recommended List rating. Top E-Commerce pick. Stock may be wek due to high whisper expectations. Recommend adding to positions. Strong growth and outlook. Target $75.

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eBay (EBAY / Nasdaq)
Morgan Stanley Co.
Raising 2002 EPS estimate above the consensus, to $0.77. We believe the company's operating momentum will continue over the near-term. Maintain Outperform rating.

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eBay (EBAY / Nasdaq)
Credit Suisse First Boston
Raising 2002 revenue and EPS estimates to $0.75 and $1.076B based on positive key metrics such as customer acquisition, subscriptions, gross merchandise sales, and international business.

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Elantec Semiconductor (ELNT / Nasdaq)
Bank of America Montgomery
Raising earnings estimates, after the company beat our December expectations by a penny per share. We now expect ELNT to earn $0.45 this year and $0.67 in fiscal 2003. Maintain Market Perform rating, based on teh company's high price/earnings valuation.

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Sprint FON Group (FON / NYSE)
Morgan Stanley Co.
Cutting EPS estimates, to reflect the company's new guidance. Maintain Outperform rating and $24 price target.

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Forest Laboratories (FRX / NYSE)
Lehman Bros
Raising 2002 and 2003 EPS estimates to $1.79 and $1.27. Near-term catalyst include an FDA assurance of an approvable letter for Lexapro, NDA filing for Alzheimer's disease, presentation of clinical data on Lexapro, and FDA approval launch of Lexapro by mid 2002.

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Forest Laboratories (FRX / NYSE)
Warburg Dillon Read
Raising 2002 earnings estimate to $2.04 per share, after the company reported a strong December quarter. Reiterate Strong Buy rating and $90 price target.

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Forest Laboratories (FRX / NYSE)
Morgan Stanley Co.
Raising estimates and price target to $96 per share.

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Handspring (HAND / Nasdaq)
NEWS
reported a loss of 12c/share for the second quarter, 2c narrower than estimates. Revenues were $70.512 million, down sharply from the $115.616 million last year, but a 15% improvement from $61.4 million in the previous quarter.

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Harrah's Entertainment (HET / NYSE)
Merrill Lynch
The company exceeded our fourth quarter EPS expectations by over 10%. Business improved at HET's Rio hotel in Las Vegas, as wel as riverboat and Atlantic City properties. Reiterate Strong Buy rating, because of the company's diversified asset base.

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Harrah's Entertainment (HET / NYSE)
Bank of America Montgomery
Raising estimates and price target to $45 per share. We now expect the company to earn $2.45 in fiscal 2002, as riverboat and Atlantic city properties have shown consistent visitor traffic since September. Reiterate Buy rating.

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Harrah's Entertainment (HET / NYSE)
Credit Suisse First Boston
Raising price target and 2002 EPS estimates to $48 and $2.20 reflecting a favorable assessment of strong Eastern and Midwest regional same-store revenue gains and a heartening performance by the Rio, an important catalyst.

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Int'l Business Machines (IBM / NYSE)
Warburg Dillon Read
We believe the company could exceed fourth quarter earnings estimates by as much as a nickel per share, because of strength in UNIX servers. Reiterate Strong Buy rating.

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IKON Office Solutions (IKN / NYSE)
Deutsche Banc Alex Brown
Raising price target to $15 per share, as we believe the company will continue to expand its margins over the coming quarters. Reiterate Buy rating.

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Intel Corporation (INTC / Nasdaq)
Warburg Dillon Read
Raising EPS estimates to $0.71 om fiscal 2002 and $1.16 for next year. We believe the company's improved guidance will prove to be conservative, as order growth picks up. Maintain Buy rating and $42 price target.

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Kimco Realty Corp. (KIM / NYSE)
Warburg Dillon Read
Maintain Strong Buy rating, despite K-Mart concerns. We believe the company's dividend is rock-solid, even if KIM loses its top tenant.

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Marvell Technology Group (MRVL / Nasdaq)
Credit Suisse First Boston
Increasing price target to $47 based on recent channel checks that suggest solid sell-through for the company's products and increasing strength in GBE design. MRVL remains our top pick; reiterate Buy rating.

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Micron Technology (MU / NYSE)
Warburg Dillon Read
Raising fiscal 2003 earnings estimate to $1.42 per share, to reflect the recent rebound in DRAM prices. Maintain Buy rating.

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Nextel Communications (NXTL / Nasdaq)
Deutsche Banc Alex Brown
The stock's pull-back offers an incredible buying opportunity. Reiterate Strong Buy rating. We have never seen NXTL valued this attractively.

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Sprint PCS Group (PCS / NYSE)
Warburg Dillon Read
Reducing estimates and price target to $37 per share. The subscriber and churn figures the company pre-announced for the fourth quarter are at the low-end end of previous expectations. EBITDA was well below our estimate of over $400 million. Maintain Strong Buy rating.

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Sprint PCS Group (PCS / NYSE)
Morgan Stanley Co.
Cutting estimates and price target to $28 per share. Fourth quarter EBITDA was most disappointing, although most of the pre-announced metrics were below our expectations. Maintain Outperform rating.

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Parametric Technology (PMTC / Nasdaq)
SG Cowen
Lowering fiscal 2002 estimate to $0.24 per share, because of manufacturing recession in the U.S. and Japan. Maintain Neutral rating.

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QLogic Corporation (QLGC / Nasdaq)
Bank of America Montgomery
Raising price target to $60 per share, as believe the December quarter results will at least be in-line with previous expectations. Reiterate Buy rating.

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RARE Hospitality Int'l (RARE / Nasdaq)
Piper Jaffray
Expects to beat previous 4Q EPS guidance of 25c-29c. Raising estimates for 4Q from 27c to 33c and 2002 from $1.35 to $1.45. Increasing target from $22 to $30. Reiterate Strong Buy.

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RF Micro Devices (RFMD / Nasdaq)
Bank of America Montgomery
Reducing estimates and price target to $24 per share. The company beat our December quarter EPS estimate by a penny, but future orders appear to have dropped off. Maintain Buy rating, as we expect business to recover by the second half of 2002.

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RF Micro Devices (RFMD / Nasdaq)
ABN Amro
lowering 2002 EPS estimate from $0.02 to $0.00 and 2003from $0.22 to $0.20 after RFMD reported earnings. The outlook for the March 2002 quarter does not look very good as management now expects revenues to be down 5%-10% sequentially vs a prior expectation of flat to modest growth. Maintain HOLD rating.

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Sanmina(SANM / Nasdaq)
Prudential Securities
Met with Randy Furr, President and COO of Sanmina-SCI. Mgmt described the end demand environment as weak with order forecasts being revised lower. There remains meaningful integration and operational challenges ahead. Maintain Hold. Lowering price target to $20 from $26.

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Shaw Group (SGR / NYSE)
Lehman Bros
Raising 2002 EPS estimate to $2.06, based on improved power generation outlook and near-term potential for company to generate free cash flow.

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Tyco Int'l. (NEW) (TYC / NYSE)
Goldman Sachs
Reported dliuted EPS of 74c vs. 63c last year, beating our 72c estimate. Raising 2002 EPS from $3.40 to $3.65 based on guidance.

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Wells Fargo & Company (WFC / NYSE)
Bear Stearns
Raised 12-month price target to $54 from $50 based on strong Q4performance. WFC showed very strong revenue growth of roughly 30% on an annualized basis in key fee income categories such as deposit fees and trust and investments, while many other banks are struggling to post even modest growth.

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Washington Mutual (WM / NYSE)
NEWS
reported fourth quarter earnings of 97c/share, surpassing the Street forecasts by 2c, and 56% above the 62c/share reported in the same period last year.

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Xerox Corporation (XRX / NYSE)
Deutsche Banc Alex Brown
Raising price target to $12 per share. We believe management can successfully turn the business around this year. Reiterate Buy rating.

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Lehman Bros (Wireless Data)
Believe Multimedia Messaging Service may emerge as a key mobile data driver. Its launch may drive higher ARPUs and increased demand for mobile infrastructure, messaging platforms, and handset replacements. Vodafone, Orange, TIM, CMG, Logica, and Comverse are all companies standing to benefit from Multimedia Messaging Service. Multimedia Messaging Service first network contract awards expected in the first quarter of 2002, with handsets due in the second quarter.

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Bear Stearns (Sentiment)
Bullish Sentiment up to midrange: SPX 44%, NDX 35%, 5 day moving average both 40%. Equity P/C down to .68, Index P/C flat at 1.47. SPX and NDX both closed just below key support at the 40 day moving average.

Bank of America Montgomery (Chip Equipment)
Intel's decision to lower CapEx spending by about $1 billion in 2002 will weigh on the recovery of this sector. INTC accounts for about 20% of global semiconductor equipment spending, and we do not believe the company will increase its spending again for the next several years.

S&P (S&P changes)
S&P 500 PCL in and KM out on 1/16. S&P 400 ATVI in and COV out on 1/16. S&P 600 DRS in and FWC out on 1/16.

Morgan Stanley Co. (Oil Services)
We believe recent API inventory figures will have a modestly negative effect on the sector in the near-term. Recent OPEC cuts will likely not be shown in these figures for another 6 weeks.

SG Cowen (Chip Equipment)
We believe the sector will trade lower today on Intel's announcement for lower CapEx spending in 2002. The company's intense focus on 300mm and 0.13 micron lines will most benefit KLAC and NVLS in the future.

Lehman Bros (Biotechnology)
We look for solid fourth quarter results as the FDA progress witnessed over the last few months gives us hope that the Agency is making progress. 2002 is also ripe with potential FDA approvals, expected FDA filings and pivotal clinical data, which should provide news flow and momentum for this sector.

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Oscillator: 0.6

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8:30 a.m. Consumer Price Index (Dec)0.0%; Less Food & Energy 0.1%

8:30 a.m. Business Inventories (Nov) -0.7%

9:15 a.m. Industrial Production (Dec) 0.0%

9:15 a.m. Capacity Utilization (Dec) 74.6%

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PIR Group Management Luncheon (sponsored by LEH)

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