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

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Deere & Company (DE / NYSE)
Bear Stearns
Lowering FY02 estimate from $1.85 to $0.85 and introducing a F1Q02 estimate of a 10 cent loss. Sales down low single-digits vs. guidance of flat to up slightly. Target $52.

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Deere & Company (DE / NYSE)
ABN Amro
Re-assuming coverage with a HOLD rating and in the process have lowered our fiscal 2002 EPS estimate from $1.80 to $0.25.The company's outlook for fiscal 2002 suggests that DE will post an unexpectedly large loss in fiscal 1Q02 and only a moderately positive result for the full year.

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Global Santa Fe(GSF / NYSE)
Deutsche Banc Alex Brown
Initiating coverage with buy rating and 12 month price target of $35 per share based on increased breadth and liquidity resulting from the merger. Introducing EPS estimates of $2.17 for 2002, $3.20 for 2003 with a peak of $4.35.

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Global Santa Fe(GSF / NYSE)
Warburg Dillon Read
Initiating coverage with a Buy rating and $30 target. Completed merger with Global Marine. Now GSF will have a presence in nearly all major offshore drilling markets. Strong management and competitive position.

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Eli Lilly & Co. (LLY / NYSE)
Morgan Stanley Co.
Downgraded from Outperform to Neutral. Raising estimates 2002 from $2.62 to $2.70, 2003 from $3.06 to $3.20, target $82. Trading at a 30% premium on upwardly revised forecasts.

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Eli Lilly & Co. (LLY / NYSE)
Goldman Sachs
Announced today that their sepsis drug Xigris has received full approval in the United States to treat patients with severe sepsis. Severe sepsis defination narrowed but pricing raised. Reiterate Reccomended List rating.

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Eli Lilly & Co. (LLY / NYSE)
Prudential Securities
We maintain our Hold rating with an $89 price target - great fundamentals, but very high valuation. FDA announced approval of Lilly's sepsis drug Xigris late Wednesday, a primary driver of valuation.

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Eli Lilly & Co. (LLY / NYSE)
Deutsche Banc Alex Brown
FDA approves LLY's Xigiris; plans for launch are within days. Increase in originally forecasted demand to 59,000 patients. We expect LLY's shares to be directly affected by RX demand for Xigiris. Maintain $90 price target.

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UPM-Kymmene Corporation (UPM / NYSE)
JP Morgan Chase & Co.
Downgrading from Buy to long term buy on valuation. Following the EC's unconditional approval for UPM to acquire Haindl on Wednesday we are also raising our ADR price target from $35 to $37 Despite revision to target price, we believe UPM no longer has enough near term upside to justify a Buy and lacks near term catalysts.

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Alcoa (AA / NYSE)
Bear Stearns
Australia's Western Mining Company nixed the 11/20 friendly takeover bid by AA; price too cheap. Buy on pullbacks. Reiterate Buy and $45 target.

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Enron Corp. (ENE / NYSE)
Credit Suisse First Boston
We believe Wednesday selloff in ENE and other merchant companies was overdone; we believe ENE is undervalued

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FedEx Corporation (FDX / NYSE)
JP Morgan Chase & Co.
Recent drop in fuel prices are likely to drive a further drop in FedEx's fuel surcharge from 3% to 2%. FDX MAKES MONEY from higher fuel prices, as revenue from the surcharge is greater than extra costs from higher fuel costs. Lowering F02E EPS from $2.00 to $1.98 and F03E from $2.50 to $2.45

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Finisar Corporation (FNSR / Nasdaq)
JP Morgan Chase & Co.
We expect FNSR to slightly exceed our ($0.05) Q202 estimates (Tues Nov. 27th). We expect the Company to discuss market share gains and design wins. 2Gb Fibre Channel transition progress update will be a highlight of the call. Stock still looks rich versus peers; we believe there could be near-term risk in stock. Maintain long term buy.

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Guidant Corporation (New) (GDT / NYSE)
Robertson Stephens
MADIT II trial shows ICDs reduce mortality in heart attack survivors by 30%; expanded indication for ICDs could double market size; raising target to $55.

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Johnson & Johnson (JNJ / NYSE)
Prudential Securities
The company announced it received FDA approval for the first transdermal contraceptive patch, Ortho EVRA, which the company expects to launch commercially during 1H02. The approval comes as expected and our estimates remain unchanged. We are maintaining our Buy rating on shares of JNJ.

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Kerr-McGee Corporation (KMG / NYSE)
ABN Amro
significantly lowered our 2001 EPS estimate from $5.40 to $5.15 and our 2002 EPS estimate from $3.50 to $2.50 because of significantly reduced production volumes in 4Q01, continued weakness in commodity prices and further deterioration in Chemical margins into 2002. We maintain our ADD rating due to the company's strong discovery record and very favorable oil/gas production profile.

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Medtronic (MDT / NYSE)
Credit Suisse First Boston
Following the early termination of GDT's ICD trial, MADIT II, we are raisign numbers for all of the ICD players. For MDT, the $15 million in incremental sales in calendar 2002 (to $800 million, up 14%) and $35 million in 2003 (to $925 million, up 16%), does not impact our fiscal 2002 EPS estimate of $1.20, but translates into a $0.01 increase to fiscal 2003 ($1.40 to $1.41). We continue to believe that MDT is well positioned in the near and long term with mid teens earnings growth forecasted over the next five years.

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Medtronic (MDT / NYSE)
ABN Amro
We maintain our ADD rating and $48-$54 price target ahead of 2Q release on 11/27 and are expecting revenues of $1.53B and EPS of $0.30. The vascular intervention segment could be lower than our estimate due to lower US stent sales. Recall that the rapid exchange system was taken off the US market in mid-September. However, Tachy sales could be higher than our estimate due to a strong push in the last month of their quarter.

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Meade Instruments Corp. (MEAD / Nasdaq)
NEWS
announced that, "recent cancellations and reductions in pre-holiday orders from several retailers," will result in third quarter earnings coming in below expectations. The company anticipates earnings of 4c/share, on revenues of $37.0 million, well below the 17c/share and $42.4 million in the same period last year.

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Nucor Corporation (NUE / NYSE)
Goldman Sachs
NUE bid $120 million for the assets of Trico Steel in Alabama. Deal would add 50-cents to our current normalized EPS estimate of $5.00. May indicate NUE's belief that the steel market has bottomed. Reiterate Buy and $60 target.

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R.J. Reynolds Tobacco (RJR / NYSE)
Prudential Securities
RJR announced a bid for Santa Fe for $320 million in cash, which represents only about one quarter of the cash RJR obtained via the acquisition of Nabisco. We expect that the acquisition will be accretive to earnings in the short-term and that Santa Fe's flagship brand, American Spirit, will be an interesting growth vehicle in the premium segment for RJR. Reit Hold and $58 price target.

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SAP AG (SAP / NYSE)
Morgan Stanley Co.
Cutting license revenue by 6% in 2001 and 8% in 2002. European CIO survey suggests software spending will decline in 2002, growth not until 2003. SAP competitive position is unrivalled, increased market share in key growth areas.

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Bear Stearns (Sentiment)
Bullish sentiment flat: SPX AND NDX 60%, 5 day moving average 69 AND 68%. EQUITY P/C UNCH AT .58.

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Deutsche Banc Alex Brown (lodging and gaming)
Mid November RevPAR figures declined 17.5% as expected, due to the crash of flight 587. We do not expect a lasting impact from the crash. Maintain positive outlook for long term.

NEWS (oil)
Russia agreed to cut 50,000 bbls/day for the remainder of the year, up from 30,000 bbls /day, but that figure is still way short of the 300,000 bbls/day that OPEC has called for. The market has certainly anticipated better news out of Russia and crude prices should give up the better part of the rise seen over the last 3 trading days. The Russian government, which still controls the country's pipeline system, has been unable to convince the privately controlled oil industry to go beyond a relatively small cut. A retest next week of this Monday's lows would not be surprising.

Bear Stearns (strategy)
We believe that the backup in interest rates sparked by the strength of October retail sales has been overdone and we believe that the market is underestimating the probability of a Fed interest rate cut in December. We expect the recovery in 2002 to be somewhat sluggish and the unemployment rate to continue to rise in 2002. Combined with continued low inflation, this outlook argues against any interest rate increases in 2002.

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Oscillator: 3.8

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No economic news slated for release today.

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No meetings scheduled for today.

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