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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Agile Software Corp. (AGIL / Nasdaq)
Dain Rauscher
assuming coverage with Neutral rating. Recent quarterly results and channel checks suggest a challenging demand environment and,consequently, little near-term growth.

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Alcatel (ALA / NYSE)
Dain Rauscher
Downgrading from Buy to Neutral on valuation.

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Bemis(BMS / NYSE)
Morgan Stanley Co.
Downgrading from Outperform to Neutral, primarily on valuation. We believe that $50 is a reasonable near-term price target.

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Burlington Nrth./Santa Fe (BNI / NYSE)
Warburg Dillon Read
Initiating coverage with a Buy rating. The stock currently trades at a discount to its peers, and we believe it can reach $34 per share.

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Business Objects S.A. (BOBJ / Nasdaq)
Merrill Lynch
Lowering our near-term rating from Accumulate to Neutral, based on valuation. Maintaining long-term Buy rating.

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Broadcom Corporation (BRCM / Nasdaq)
Bank of America Montgomery
Initiating coverage with a Buy rating and $55 price target.

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Ciena Corporation (CIEN / Nasdaq)
Credit Suisse First Boston
Initiating coverage with a Buy rating and $27 price target.

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Cognos Incorporated (COGN / Nasdaq)
Dain Rauscher
Downgrading to Neutral from Buy-Speculative based on valuation.

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CSX Corporation (CSX / NYSE)
Warburg Dillon Read
Initiating coverage with a Hold rating and $40 price target.

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Casella Waste Systems (CWST / Nasdaq)
Lehman Bros
Initiating Strong Buy rating with a $19 price target. This small-cap has begun to successfully turnaround its business.

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DoubleClick (DCLK / Nasdaq)
Goldman Sachs
Resuming coverage with a Market Perform rating. Leading provider of online mktg solutions. Continued cost reductions and growth initiatives. Declining clicks per minute, ad volume, and clients. Appears positioned to return to limited profitable growth by 3Q02. Support at $8-9.

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Federated Department Str. (FD / NYSE)
Warburg Dillon Read
Upgrading from Hold to Buy, as we believe the company will easily exceed consensus expectations. Also raising estimates and price target to $45 per share.

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Fairmont Hotels(FHR / NYSE)
Goldman Sachs
Upgrade from Market Perform to Recommended List. Raising 2002 EPS from 80c to 95c. Target $33. Improved outlook on lodging stocks. Adding $651 million to theoretic value based on re-analysis. Some of the strongest growth prospects of its peers.

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Federated Investors (FII / NYSE)
Warburg Dillon Read
Raising estimates and price target to $36 per share. We believe the company is successfully attracting more assets than we had previously expected.

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Incyte Genomics (INCY / Nasdaq)
JP Morgan Chase & Co.
Upgrading from long term buy to Buy, and adding to Focus List with a $25 PT after announcement of new CEO and CSO, Paul Friedman and Bob Stein, from DD Pharma. Recent moves to exit contract sequencing business and enter drug discovery program should gain investor credibility for new mgt.

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Manugistics Group (MANU / Nasdaq)
Dain Rauscher
assuming coverage with neutral rating. Conversations with Manugistics management and diligence from the channelsuggests an operating environment that should continue to bechallenging, and consequently little near-term growth.

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Mellon Financial Corp. (MEL / NYSE)
Warburg Dillon Read
Downgrading from Buy to Hold, based on valuation. The earnings outlook for the industry is cloudy.

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Norfolk Southern Corp. (NSC / NYSE)
Warburg Dillon Read
Initiating coverage with a Hold rating and $20 price target.

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Nortel Networks Corp. (NT / NYSE)
Dain Rauscher
Downgrading from Buy to Neutral; lowered revenue forecasts to $3.7 billion for the December quarter (down from $4 billion previously) and to $15 billion for 2002, down from $16.3 billion.Our cash EPS estimates remain unchanged for 4Q01 and 2002.

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ONI Systems Corp. (ONIS / Nasdaq)
Merrill Lynch
Initiating coverage with a near-term Neutral and long-term Accumulate rating. The company's strongest segment is its metro-area optical products, where we believe NT and CIEN are growing faster.

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State Street Corporation (STT / NYSE)
Warburg Dillon Read
Downgrading from Buy to Hold, with a $53 price target. We believe upside is limited from current levels, because of our outlook for the capital markets.

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Tech Data Corporation (TECD / Nasdaq)
NEWS
reported third quarter earnings of 58c/share, 7c above expectations, but below the 82c/share reported in the same period last year.

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Tech Data Corporation (TECD / Nasdaq)
Credit Suisse First Boston
Upgrading from Hold to Buy, with a $56 price target. The company has managed positive growth over the past three quarters, and we see the bottom coming this quarter. TECD will benefit from being the leader in a consolidated industry during the next cycle upturn.

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Union Pacific Corp. (UNP / NYSE)
Warburg Dillon Read
Initiating coverage with a Buy rating and $65 price target. We believe Union Pacific is the premier franchise in the long-haul market.

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Veritas DGC (VTS / NYSE)
Goldman Sachs
Downgrade from Trading Buy to Market Outperform. Merger with Petroleum Geo-Services ASA (PGO) announced. New company will be wholly-owned subsidiaries of a new holding company. PGO gets 0.47 shares, VTS gets 1 share of new co. Combined co. has about 1 billion mkt cap. PGO will own 60%. Deal values PGO at $7.54

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Zarlink Semiconductor(ZL / NYSE)
Bank of America Montgomery
Initiating coverage with a Buy rating and $14 price target. We believe the company has the potential to emerge as a pure-play communications IC supplier in the coming years.

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Alcoa (AA / NYSE)
Merrill Lynch
Reiterate Buy rating at these levels. We believe the outlook for aluminum remains positive, and that consensus EPS estimates may be conservative.

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Bank of America Corp. (BAC / NYSE)
Prudential Securities
BAC is undergoing a unique strategic overhaul. This includesbalance sheet restructuring over the past year and, over the next two years, operational restructuring. we believe that the firm's Six Sigma program will result in faster than previously estimated benefits, which we estimate at $1+ bil. in 2002 and 2003. We are increasing our 2002 EPS estimate from $5.15 to $5.30.

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Bristol-Myers Squibb Co. (BMY / NYSE)
Prudential Securities
We believe BMY might lower 2002 EPS guidance due to the imminent approval of generic versions of BMY's Glucophage (diabetes) and other events. We are lowering our 2002 EPS estimate from $2.61 to $2.54 - consensus for 2002 is currently $2.60.

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Bristol-Myers Squibb Co. (BMY / NYSE)
Deutsche Banc Alex Brown
Lowering 2002 estimate to $2.55 per share, because of lower expectations for Glucophage. Maintain Strong Buy rating.

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Brocade Communications (BRCD / Nasdaq)
Lehman Bros
We believe the company will have to lower its guidance for the next quarter. Maintain Market Perform rating.

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Caterpillar (CAT / NYSE)
Lehman Bros
Quick survey of dealers shows that order rates are down as much as 20% over the prior year. This goes against data from the company that sales volume has improved year-to-date.

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Dollar General Corp. (DG / NYSE)
Deutsche Banc Alex Brown
Trimming fourth quarter EPS estimate by a penny, because of lower November comp sales growth.

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Flextronics International (FLEX / Nasdaq)
Dain Rauscher
mid-quarter business update is planned for tonight. We do not expect any changes in previous guidance. Guidance for the December quarter was for revenues of $3.3-$3.5 billion and cash EPS of $0.15-$0.18.

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Greenpoint Financial Corp (GPT / NYSE)
Lehman Bros
Raising estimates to reflect continual strength in the specialty mortgage market. Reiterate Strong Buy rating.

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Goldman Sachs Group (GS / NYSE)
JP Morgan Chase & Co.
Raising 4Q est to $1.00 from $0.88 (st $0.88) to incorporate the likely benefit to principal investments, asset management, and securities services revenues from higher equity values.

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Hasbro (HAS / NYSE)
NEWS
announced a private offering of $200 million of Convertible Senior Debentures, to be issued under Rule 144A and Regulation S, in order to refinance existing debt.

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Internet Security Systems (ISSX / Nasdaq)
Dain Rauscher
Channel checks reveal positive business trends for the first twomonths of the quarter. We believe that Site Protector, a new product, is on track for release later this quarter. An elevated awareness for IT security continues to be the major sales driver.

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Invitrogen Corporation (IVGN / Nasdaq)
JP Morgan Chase & Co.
Reit Buy, $85 PT ahead of analyst meeting in NYC on Dec 4 to provide 2002 financial guidance. We anticipate that management will provide an upbeat outlook for both its molecular biology and cell culture businesses and will express comfort with the current 02 st estimate of $2.06.

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McKesson Corporation (MCK / NYSE)
Bear Stearns
reit buy ahead of tomorrow's analyst meeting.

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McKesson Corporation (MCK / NYSE)
Weisel Partners
Upcoming analyst meeting should highlight promising techinitiatives; Believe fundamentals continue to improve; Reiterate Buy.

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Merrill Lynch & Co. (MER / NYSE)
ABN Amro
maintain BUY rating after company announced an agreement to sellits Canadian private client and asset management businesses toCanadian Imperial Bank of Commerce. We expect to see similar announcements from other regions as MER's IPCG focus moves toward international high net worth clients and away from the mass affluent market.

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Millennium Pharmaceutical (MLNM / Nasdaq)
SG Cowen
Improving loss estimates, to reflect more favorable terms for the Campath licensing deal. Reiterate Buy rating.

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Morgan Stanley (MWD / NYSE)
JP Morgan Chase & Co.
Lowering 4Q EPS est to $0.60 from $0.79 (st $0.67) to incorporate lower trading revenues - $1.1B from $1.5B.

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Office Depot (ODP / NYSE)
Warburg Dillon Read
Raising price target to $20 per share, as we believe there is upside to our estimates. The entire industry is benefitting from a reduction in square footage growth.

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PG&E Corporation (PCG / NYSE)
Goldman Sachs
Raised 2002 EPS from $2.50 to $2.90. Target $30-34. Can earn $3.00-$3.15 in 1st full year out of bankruptcy.

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Pharmacia Corporation (PHA / NYSE)
JP Morgan Chase & Co.
Like stock overall and co has already lowered earnings guid. Expect Cox 2 update, but do not expect new news, could get some expanded indications info. Could learn some new info on pipeline. Wed analyst meeting

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Pier 1 Imports (PIR / NYSE)
Lehman Bros
Raising estimates to reflect higher guidance from management. We now expect the company to earn $0.85 per share in 2001 and $0.98 for next year. Reiterate Buy rating.

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Tech Data Corporation (TECD / Nasdaq)
Weisel Partners
October quarter EPS upside from strong execution; Demand stable, but no upturn yet, in our view; Maintain Buy.

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Union Pacific Corp. (UNP / NYSE)
JP Morgan Chase & Co.
Reit Buy ahead of upcoming analyst meeting (11/28-11/29). Expect management will set conservative near-term expectations given the economic environment and will focus on the long term compelling earnings growth outlook. Reducing 2002 & 2003 EPS by 7% to reflect the uncertain economic outlook in early 2002 and a more conservative stance on expense assumptions next year.

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Bear Stearns (Sentiment)
Bullish sentiment flat at high levels: SPX 80%, NDX 75%, 5 day moving average 70 AND 68%. EQUITY P/C STILL LOW AT .53, SPX P/C DOWN TO 1.52.

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Dain Rauscher (Electronics Manufacturing Services)
Channel checks are encouraging on enterprise side of business (IBM, Sun, Cisco, Dell). Lower OEM inventory levels should translate into improved pulls. EMC has pulled Symmetrix orders into Dec. implying inventory work down is nearly complete.Inventories for 14 major OEMs we track are in line with yearend 1999 levels at $34B.

Smith Barney Shearson (Strategy)
History shows that the best performing growth stocks going into a recession have high ROEs. History also shows that for the first 12 months after the market bottom, high ROE is not an important factor in determining the best performing stocks. Very likely that 9/23 was the low for small-cap stocks.

Morgan Stanley Co. (Airlines)
Industry data shows that air traffic continues to pick up, and we believe the worst may be over. Lower fuel prices should also help. Our top pick remains LUV.

Morgan Stanley Co. (Strategy)
Maintain stance that any immediate signs of a recovery are not likely. 2002 EPS estimates are optimistic.

Deutsche Banc Alex Brown (Electronics Manufacturing)
October book/bill was weak, and we believe pricing pressure will continue. We do not see the bottom forming until mid-2002.

Morgan Stanley Co. (Paper/Forest Products)
We recommend an Overweight position in the sector, as prices should recover this Spring.

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9:00 a.m. BTM Chain Store Sales

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10:00 a.m. Existing Home Sales 5.000M

10:00 a.m. Consumer Confidence consensus 86

Oscillator: 4.7

10:30 a.m. LJR Redbook week of November 24

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NOK Capital Market Day

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MU Shareholder Meeting

ORCL User Group Conference

Credit Suisse First Boston Annual Technology Conference Scottsdale, AZ INTC, AGRA, GLW, LXK

SG Cowen 3rd Annual Global Health Care Conference ParisGSK, ELN, THC, BGEN, SKYE, NVO, ICOS, PPDI, PDLI, KG, ENZN, SRA,

Robertson Stephens Medical Conference New York, NY CYTC, MRX, OSIP, SEPR, TKTX, WMGI, CEPH, ISRG, ARRY, CRA, EMIS, GLGC, ITMN, MDCO, MLNM

Deutsche Banc Alex. Brown Basic Industries Conference New York, NY DE, TYC, ITT, BCC, IP, ENE, WY, GLT, BOW, WVVI, AMCR, BLL, ATR, SEE, OI, PY, SON, GHM, CCK, ASTE, FLS, KMT, MTW, CNH, AG, MZ,

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