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

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Change In Ratings | Stock Comments / EPS Changes | Strategy Calls / Market Calls | Economics | Meetings | View Archived StreetNotes

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Andrx Corporation (ADRX / Nasdaq)
Goldman Sachs
Upgrading to a Trading Buy from Market Ooutperform. FDA approves of all dosage strengths of generic Prilosec late Friday. 6-month exclusivity on the 40mg dose (6.5% of scripts). Very high risk. Target remains at $115 with a generic Prilosec launch in 2Q02 (81% upside) or $60 without any (5% downside).

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Andrx Corporation (ADRX / Nasdaq)
ABN Amro
upgrading from HOLD to BUY based on a significant reduction of the risk profile for the company, specifically in reference to their prospects for selling generic Prilosec.

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Applied Films Corporation (AFCO / Nasdaq)
Robertson Stephens
Initiating Coverage with a Buy Rating and $35 target. Equipment maker for Flat Panel Displays. FPD industry is being driven by migration of desktop displays to FPDs from CRTs and of wireless handset displays to larger more complex screens.

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Air Products & Chemicals (APD / NYSE)
ABN Amro
initiating coverage with an ADD rating, $50 target, fiscal 2002 EPS estimate of $2.40 and fiscal 2003 EPS estimate of $2.75. APD is improving returns through enhanced capital discipline and aggressive portfolio management. We expect APD to post strong earnings growth with improving returns on capital when thecycle turns.

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Biovail Corporation (BVF / NYSE)
JP Morgan Chase & Co.
Upgrading from long term buy to Buy; raising price target from $60 to $70, and raising 2002E revenue/EPS from $644m/$1.64 to $729m/$1.73 The fundamentals have improved significantly: 1) a good Glaxo deal, 2) improved earnings visibility, 3) clinical progress with the pipeline, 4) a fortified balance sheet with over $550M in fresh cash.

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Cross Country Inc.(CCRN / NYSE)
Smith Barney Shearson
Initiating coverage with a Buy rating and $31 target. Largest provider of healthcare staffing services in the U.S. well positioned to sustain a 15% EBITDA and 25% EPS growth rate over the next several years (greater in the near-term). increasing demand; increasingly challenging nursing labor market.

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Cross Country(CCRN / NYSE)
Merrill Lynch
Initiating coverage with a Buy rating and $30 price target. The largest healthcare staffing firm deserves to trade at a multiple in-line with its growth rate.

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Cross Country(CCRN / NYSE)
Bank of America Montgomery
Initiating coverage with a Buy rating and $30 price target.

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Atlas Air Worldwide Hldgs (CGO / NYSE)
Bear Stearns
Downgrading from Attractive to Neutral. CGO has exceeded ourprice target of $13 by 24% and thus we are reducing our rating based on the stock's recent price appreciation.

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CNET Networks (CNET / Nasdaq)
Weisel Partners
Initiate with Attractive & $10 target; Leading interactive mediaplayer well-positioned to prosper in emerging online ad industry, in our view.

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Conoco(COC.B / NYSE)
NEWS
COC and P announced that their boards of directors have unanimously approved a merger of equals, and that the companies have signed a definitive merger agreement. The newly-formed company will be called ConocoPhillips. Phillips shareholders will receive one share of new ConocoPhillips common stock for each share of Phillips they own and Conoco shareholders will receive 0.4677 shares of new ConocoPhillips common stock for each share of Conoco they own.

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Conoco (COC.B / NYSE)
Deutsche Banc Alex Brown
Upgrading from Market Perform to Buy, with a $30 price target. We believe the merger with P gives the company more scale and earnings power.

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Goodyear Tire & Rubber (GT / NYSE)
Smith Barney Shearson
Initiating coverage with a Neutral rating and target of $23 based upon valuation of EV/EBITDA. Leading supplier to the $75 billion global tire industry. Actively restructuring its global operations and it has been partnering with other global leaders to strengthen its competitive position.

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Goodyear Tire & Rubber (GT / NYSE)
Warburg Dillon Read
Raising estimates and price target to $25 per share, because of lower oil prices. Maintain Hold rating.

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Lifepoint Hospitals (LPNT / Nasdaq)
ABN Amro
upgrading from HOLD to BUY to reflect positive fundamentals and LPNT's current low valuation. The stock is currently discounted (falling 35% within last 2 months) likely due to sector shifting and profit taking.

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Northrop Grumman Corp. (NOC / NYSE)
JP Morgan Chase & Co.
Resuming coverage with a Buy, $130 Price Target, adding to Focus List. 2001/02 EPS estimates $5.85/$6.75 We expect NOC to generate double-digit organic growth over the next several years, and 100-150 basis points in margin expansion over the next 3 yrs.

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Nvidia Corporation (NVDA / Nasdaq)
Merrill Lynch
Initiating coverage with a near-term Accumulate and long-term Buy rating. Our $70 price target is based on the continued success of MSFT's Xbox game system.

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Principal Financial Group, Inc.(PFG / Nasdaq)
Goldman Sachs
Initiating coverage with a Recommended List rating and a target of $26, or 17% projected upside. PFG markets 401(k) and other employee benefit products to the underpenetrated small to medium business market. PFG's international operations are poised for a major earnings swing in 2002.

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Principal Financial Group(PFG / Nasdaq)
Credit Suisse First Boston
Initiating coverage with a Buy rating and $26 price target.

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Praxair (PX / NYSE)
ABN Amro
We are initiating coverage with a BUY rating, $65 target, 2001 EPS estimate of $2.96 and 2002 EPS estimate of $3.10. We believe that PX will be the first industrial gas company to validate a high growth, high return business model and as this occurs PX's multiple will expand.

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SonicWall (SNWL / Nasdaq)
Lehman Bros
Initiating coverage with a Buy rating and $22 price target.

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Valero Energy Corp. (VLO / NYSE)
Bear Stearns
Downgraded from Neutral to Unattractive we see downside to $26 per share. VLO's purchase of UDS is attracting close scrutiny by the FTC. We believe the economics of the deal would change if VLO is required to sell a refinery. Lowering 2001 earnings and Cash Flow Estimates to Reflect Lower Margins in 4Q.

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WMS Industries (WMS / NYSE)
Deutsche Banc Alex Brown
Downgrading from Buy to Market Perform, because of software problems the company is facing. Also lowering EPS estimates to $1.18 this year and $1.69 for fiscal 2002.

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American Eagle Outfitters (AEOS / Nasdaq)
Morgan Stanley Co.
Raising our price target to $35 per share, to reflect the company's strong fundamentals. Reiterate Outperform rating.

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American Eagle Outfitters (AEOS / Nasdaq)
Piper Jaffray
Reducing Q4 and FY2003 EPS estimates to $0.69 and $1.82 from $0.71 and $1.88, respectively. Reported Q3 EPS of $0.42 versus $0.41 LY, slightly ahead of consensus estimates; Comp store sales were 2.6% versus 6.8% LY; Gross margin decreased 140 basis points due to lower merchandise margins; Maintaining Buy rating and reducing price target from $39 To $38.

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AOL Time Warner (AOL / NYSE)
Deutsche Banc Alex Brown
Raising price target to $46 per share, on the expected success of this and future Harry Potter films. Also raising EBITDA estimates for Warner Films through 2006, but maintaining overall figures.

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AOL Time Warner (AOL / NYSE)
JP Morgan Chase & Co.
Harry Potter had the biggest opening of all time this weekend brining in $93.5m above our $65m est. We believe this could add 2%-3% to our filmed entertainment rev forecast and add $0.01-$0.02 to 02E cash EPS. Reiterate Buy as could be positive for stock.

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CacheFlow (CFLO / Nasdaq)
Dain Rauscher
CFLO has never generated positive operating cash flows. Avoid until company shows signs of turn around.

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Columbia Sportswear Co. (COLM / Nasdaq)
Warburg Dillon Read
Raising price target to $39 per share.

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Hughes Electronics Corp. (GMH / NYSE)
Smith Barney Shearson
2002 earnings cut to 61c from 82c based upon company guidance and model valuation. Reiterate Buy rating and $18 target.

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Isle of Capri Casinos (ISLE / Nasdaq)
Robertson Stephens
Raising 2002 operating EPS to $1.23 from $1.11. Oct. results in-line. Reiterate Market Perform.

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Jabil Circuit (JBL / NYSE)
Dain Rauscher
Lowering estimates to reflect slower development of new businessopportunities.

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Jones Apparel Group (JNY / NYSE)
Warburg Dillon Read
Raising price target to $39 per share.

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Krispy Kreme Doughnuts (KKD / NYSE)
Dain Rauscher
Company reported another outstanding quarter and we are raising our 2001 and 2002 estimates and price target.

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Knight-Ridder (KRI / NYSE)
Credit Suisse First Boston
Reducing estimates to $2.81 per share in 2001 and $3.18 for next year. Ad revenue continues to be weak, but we believe the stock is cheap now. Maintain Buy rating and $73 price target.

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Lehman Brothers Holdings (LEH / NYSE)
Smith Barney Shearson
4Q EPS cut to $0.75 from $0.90 ($0.11 trading, $0.04 commissions); though disruptions were temporary, as firm appears nearly 100% operational in Nov. Ultimately, much of lost revenue should be picked up by business disruption insurance. 11/01E cut to $4.66 from $4.81. Target unchanged at $70.

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Liz Claiborne (LIZ / NYSE)
Credit Suisse First Boston
Raising price target from $51 to $60 per share, as the economy appears to be recovering faster than expected.

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Liz Claiborne (LIZ / NYSE)
Warburg Dillon Read
Raising price target to $58 per share.

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Lowe's Companies (LOW / NYSE)
NEWS
reported a 24% increase in 3Q earnings to $250.0 million or 32c per share, above analyst estimates for 31c, and 26c in the year ago period. Sales increased by 21% to $5.45 billion from $4.50 billion a year ago while

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Nike (NKE / NYSE)
Credit Suisse First Boston
Raising price target to $60 per share.

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Pep Boys - MM&J (PBY / NYSE)
Goldman Sachs
Raising F01 to $0.68 from $0.66, reflecting 3Q upside of $0.21 , 2c ahead of our est. Same-store sales declined (8%). Raising F02 by 15c to $0.85. Reiterate Market Performer.

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Pharmacia Corporation (PHA / NYSE)
JP Morgan Chase & Co.
FDA approves Valdecoxib (next generation cox-2) on Fri, months ahead of best case (Jan) approval. This resolves the most important controversy in PHA story and makes 02E EPS of $1.81 look conservative.

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Phillips Petroleum Co. (P / NYSE)
Deutsche Banc Alex Brown
Raising estimates and price target to $64 per share. We view the merger with COC as a positive event. Reiterate Buy rating.

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Phillips Petroleum Co. (P / NYSE)
Warburg Dillon Read
Raising estimates to reflect the buyback program announced with the COC merger. Maintain Hold rating.

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Reebok International (RBK / NYSE)
Credit Suisse First Boston
Raising price target to $30 per share. Reiterate Buy rating.

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Polo Ralph Lauren Corp. (RL / NYSE)
Credit Suisse First Boston
Raising price target to $32 per share. Reiterate Buy rating.

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Sun Microsystems (SUNW / Nasdaq)
Weisel Partners
Industry data show UNIX share gains in Sept Q; Believe new product cycle having significant impact on competitors; Well-positioned for IT recovery, in our view; Maintain Buy.

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Target Corporation (TGT / NYSE)
Sanford Bernstein
Q3 earnings results before market open on Tuesday, November 20th, we expect it to report EPS of $0.25 before extraordinary charges (6% growth versus last year), in line with consensus. This represents sales growth of 8.6% (including a 1.5% companycomp).

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Tellabs (TLAB / Nasdaq)
Lehman Bros
Raising fiscal 2002 estimate to $0.29 per share, reflecting the job cuts that were announced last Friday.

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Tommy Hilfiger Corp. (TOM / NYSE)
Credit Suisse First Boston
Raising price target to $20 per share. We believe the consumer is becoming more confident in this market.

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Vignette Corporation (VIGN / Nasdaq)
Warburg Dillon Read
Raising price target to $9 per share. Reiterate Strong Buy rating, and the stock is our top mid-cap pick for next year.

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Bear Stearns (Market Sentiment)
Bullish Sentiment lower but still frothy: SPX 68%, NDX 70%, 5-day moving average both 77%. Equity P/C bearish at .46, SPX P/C neutral at 2.13. NDX has less room to the upside with the 200-day moving average up 100 points.

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Weisel Partners (Storage Industry)
Channel checks suggest Dec Q on target; Latest industrydata demonstrate that SAN remains the highest growth segment; QLGC remains our favorite name

Merrill Lynch (Oil)
Downgrading the sector to Underweight, as we believe a global price war is on the horizon.

Lehman Bros (IT Consulting)
Our industry sources say that an overall recovery is not occuring, but ERP orders seem to have picked up. We still prefer defensive names, like EDS.

Weisel Partners (Cable/DBS)
Overweight the sector; Believe cable industry w/ little adexposure & promising cable modem & digital cable opportunities can grow 10-15%; Comcast remains our top pick.

Deutsche Banc Alex Brown (Chip Equipment)
The industry outlook remains weak, and we believe many companies will report quarterly results below their current guidance.

Merrill Lynch (Basic Materials)
Upgrading the sector from Neutral to slightly Overweight, as we believe this cyclical industry will help lead the market recovery.

ABN Amro (Tankers)
We are downgrading GMR, OMM, OSG and TK all from ADD to HOLD as we do not see a positive catalyst for the group over the next 3-4 quarters.

Warburg Dillon Read (Economics)
We believe the Fed will cut interest rates another 50 basis points, as this moderate recession continues. We see 25 point reductions at both the December and January meetings.

Warburg Dillon Read (Lodging)
We don't believe that the fundamentals justify valuations right now. Trends in business travel usually lag the overall economy, which will hurt earnings over the next few quarters.

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Oscillator: 5.1

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8:30 a.m. Housing Starts, Starts 1.5200M

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XRX - Xerox 2001 Investor Conference-8 AM

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DOV - Dover Corporation`s Annual Investor Meeting-8 AM

MOT - Alfred Berg ABN Amro ICT Seminar-12 PM

CVX - ChevronTexaco Security Analyst Meeting - New York-1:30 PM

LOW Analyst Meeting

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