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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Applied Materials (AMAT / Nasdaq)
Smith Barney Shearson
Removing from recommended list due to sector weight adjustments. Shifting from a market weight position in Technology to a slight underweight position, rather than any specific company related issues.

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Anthem Inc.(ATH / Nasdaq)
Goldman Sachs
Initiating coverage on Recommended List with a $62 target. Among top 5 in Managed Care. No. 1 market share in 7 of 8 states. Exclusive use of BlueCross&BlueShield brand in all 8 gives marketing advantage. Room for acquisition growth.

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Anthem(ATH / Nasdaq)
Lehman Bros
Initiating coverage with a Strong Buy rating and $60 price target.

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Anthem(ATH / Nasdaq)
Merrill Lynch
Initiating coverage with a near-term Accumulate and long-term Buy rating.

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Anthem(ATH / Nasdaq)
Morgan Stanley Co.
Initiating coverage with a Strong Buy rating and $58 price target.

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Digene Corporation (DIGE / Nasdaq)
Goldman Sachs
Initiating coverage with Market Outperform and $38 target. Proprietary DNA based HPV test is the only FDA-approved diagnostic test for detecting types of human papillomavirus, the cause of virtually all cervical cancers.

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Edison International (EIX / NYSE)
Lehman Bros
Upgrading from Market Perform to Strong Buy, with a $19 price target. We believe the company's ability to restructure its business is being discounted in the market, and that our current cashflow estimates may prove conservative.

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Flowserve Corporation (FLS / NYSE)
Morgan Stanley Co.
Initiating coverage with an Outperform rating and $30 price target. We believe any improvement in the economy could provide upside to our estimates.

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Federal Realty Inv. Trust (FRT / NYSE)
Goldman Sachs
Downgrading to Market Underperform from Market Perform. Lowering estimates for 2002 from $2.79 to $2.61, 2003 from $2.83 to $2.75.

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Lucent Technologies (LU / NYSE)
Morgan Stanley Co.
Downgrading from Outperform to Neutral, based on valuation. We believe the stock is not worth more than $8, despite its positive restructuring progress.

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IndyMac Bancorp (NDE / NYSE)
Goldman Sachs
Upgrade to Trading Buy from Market Outperform. Most hedge and arbitrage related selling done. Near-term 10-15%, or to $25-26. Will meet or exceed Q4 consensus of $0.57 and '02 consensus of $2.38, or up 20%. Origination pipeline remains strong.

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Odyssey Healthcare(ODSY / NYSE)
Merrill Lynch
Initiating coverage with a Buy rating and $22 price target. The company operates in the hospice niche of the healthcare industry, and has the ability to post 25% annual EPS growth.

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OmniVision Technologies (OVTI / Nasdaq)
Prudential Securities
Upgrading to Buy from Hold with a new price target of $10 (up from $5). Major European cellular handset OEMs planning to incorporate microcameras in some of their nextgeneration products; Omnivision well positioned for further design wins in handsets in our view. Channel checks indicate PC camera inventories may stabilize within 1-2 quarters

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UnitedHealth Group (UNH / NYSE)
Smith Barney Shearson
Downgrade from Buy to Outperform based on valuation. Maintaining $73 target. Few, if any, near-term concerns for meeting/beating consensus. Fundamental outlook for health insurance earnings momentum in 2002 is not as robust as in prior years

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WellPoint Health Networks (WLP / NYSE)
Smith Barney Shearson
Downgrade from Buy to Outperform based on valuation. Maintaining $125 target. Near-term concerns for meeting or exceeding consensus expectations

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Alcoa (AA / NYSE)
Prudential Securities
Because the SEC requires disclosure of material events and Alcoa has made none throughout 2001 concerning WMC nor ownership of AWAC, we do not believe Alcoa has made any formal offer forWMC nor entered into serious enough discussions to require disclosure.

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Alloy Online (ALOY / Nasdaq)
Dain Rauscher
We expect a solid earning report on Wednesday and view the name as a very logical consumer play.

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Bank of America Corp. (BAC / NYSE)
Lehman Bros
Raising price target to $72 per share.

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Brocade Communications (BRCD / Nasdaq)
Morgan Stanley Co.
We believe the company will beat our January quarter numbers. Maintain Neutral rating, based on valuation.

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Comverse Technology (CMVT / Nasdaq)
Robertson Stephens
Increasing 2003 Operating EPS from 48c to 70c. Fine-tuning model ahead of earnings announcement. Revenue forecast down from $1190MM to $1110MM, reflecting more muted outlook for its voice mail business. Forecasting aggressive cost cutting should offset this reduction. Shares are fairly valued.

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Devon Energy Corporation (DVN / AMEX)
Lehman Bros
Lowering cash flow estimates because of lower expected oil prices. Maintain Market Perform rating.

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eBay (EBAY / Nasdaq)
Goldman Sachs
Raising 4Q01 rev/EPS to $215m/$0.13 from $206m/$0.12. Top e-commerce pick. Key drivers remain strong.

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Guidant Corporation (New) (GDT / NYSE)
Dain Rauscher
Increasing FY02 estimates to reflect potential acceleration inICD-revenues due to MADIT-2 and continued strength in domestic stent-franchise.

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Kraft Foods (KFT / NYSE)
NEWS
According to the Wall Street Journal, KFT issued a voluntary recall of certain Polly-O brand cheese products after government tests found a sample to contain salmonella bacteria.

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Mellon Financial Corp. (MEL / NYSE)
Lehman Bros
Reducing price target to $45 per share. Maintain Buy rating.

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National City Corporation (NCC / NYSE)
Lehman Bros
Lowering price target to $33 per share. Maintain Buy rating.

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Novellus Systems (NVLS / Nasdaq)
Lehman Bros
We believe the company will maintain guidance on its mid-quarter conference call this Thursday.

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Riverstone Networks (RSTN / Nasdaq)
Morgan Stanley Co.
Raising price target to $16 per share. Reiterate Outperform rating.

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Wachovia Corporation (WB / NYSE)
Lehman Bros
Reducing price target to $34 per share. Reiterate Market Perform rating.

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Wal-Mart Stores (WMT / NYSE)
NEWS
reported record single-day sales for Friday, Nov. 23, of more than $1.25 billion, thanks to strong sales of home electronics, toys and small appliances.

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Prudential Securities (brokers)
As was expected, 4Q01 should show further weakness for the four securities firms, whose quarter runs September through November. (GS, MWD, LEH, and BSC). We expect pre-tax operating income to decline 12% from 3Q01 and 38% from 4Q00. The brokerage stocks have enjoyed a speculative rally in November, similar to others in the post peak period that have failed to stick. We remain neutral on the group for now.

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Deutsche Banc Alex Brown (Diversified Industrials)
Maintain Overweight opinion on the sector, despite high P/E valuations. We believe that TYC and TFX could report earnings surprises.

Morgan Stanley Co. (Specialty Retail)
Mall traffic appeared muted this weekend, as shoppers appeared to selectively look for discounts. Heading into the peak holiday shopping season, our top picks are ANF, ROST and AEOS.

Smith Barney Shearson (Technology )
Shifting from a market weight position in Technology to a slight underweight position, rather than any specific company related issues.

Lehman Bros (Banks)
We believe the average stock in this sector is undervalued by 20%. Revenue growth will be the differentiating factor going forward.

Lehman Bros (Strategy)
We would move recent technology profits to traditional cyclicals. We believe another tech "bubble" is forming, given the fundamental growth story has not yet materialized.

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Oscillator:

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No major indicators are slated for release today.

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Lehman Brothers Retail Seminar - New York, NY

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Deutsche Banc Alex. Brown Basic Industries Conference - Nov 26, 2001 to Nov 28, 2001 New York, NY

SG Cowen 3rd Annual Global Health Care Conference - Nov 26, 2001 to Nov 29, 2001 Paris

Credit Suisse First Boston Annual Technology Conference Scottsdale, AZ -- HNCS, NTIQ, SSTI, RSTN, CMRC

Robertson Stephens Medical Conference New York, NY -- NPSP, AGEN, DGEN, ALKS, CBST, ICOS, VRTX, WPI, MAXY, ORCH, ABI, EYE

MIKE - Michaels Stores stock split (2 for 1)

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