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

Author:: TSC Staff
Publish date:: Dec 10, 2001 9:20 AM EST

Updated from 8:30 a.m. EST

Second Edition

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Advisory Board Company(ABCO / NYSE)
Credit Suisse First Boston
Initiating coverage with a Buy rating and a $35 price target. Furthermore, 2002 and 2003 EPS estimates of $0.50 and $0.72. ABCO's business model is visible and highly scalable.

AMN Healthcare(AHS / NYSE)
Warburg Dillon Read
Initiating coverage with a Buy rating and $32 price target. We believe the staffing company will profit from the ongoing nursing shortage in the nation's hospitals.

Aviron (AVIR / Nasdaq)
Piper Jaffray
Downgrade from Strong Buy to Neutral. $50 target suspended. Being aquired by MEDI. Good fit for both.

Caterpillar (CAT / NYSE)
Goldman Sachs
Upgrading from Market Outperform to Market Perform. Stock typically bottoms in front of earnings.

Cabot Microelectronics (CCMP / Nasdaq)
Warburg Dillon Read
Downgrading from Strong Buy to Buy, based on valuation. Raising price target to $85 per share.

Cognos Incorporated (COGN / Nasdaq)
Goldman Sachs
Upgrade from Neutral to Outperform and target to $25.50. IT spending tight, but business stabilized and optimistic 2002. Expect Feb-02 lowered guidance. Lowering 03 est.

Centillium Communications (CTLM / Nasdaq)
Salomon Smith Barney
Downgrade from Buy to Outperform. Slower than expected ramp in customers central office ASDL platforms. End-market improving, valuation appealing. Target $12.

dj Orthopedics, Inc.(DJO / Nasdaq)
Goldman Sachs
Initiating coverage with Market Outperform and $19 target. Competes in the $3 billion sports medicine market with leading market shares. Target range is $17-$22.

Delphi Automotive Systems (DPH / NYSE)
Morgan Stanley Co.
Downgrading to Outperform from Strong Buy. Valuation are still attractive, but not as compelling.

Exar Corporation (EXAR / Nasdaq)
Robertson Stephens
Upgrade to Buy from Neutral. Raising target from $22 to $30. #1 mid-cap idea in 02. Leadership position. Top-notch management.

Lear Corporation (LEA / NYSE)
Morgan Stanley Co.
Downgrading from Strong Buy to Outperform, but raised our price target from $45. Valuations still attractive, but not as compelling.

MetLife (MET / NYSE)
JP Morgan Chase & Co.
Upgrading from market perform to buy; maintaining our $33 Price Target, ahead of analyst meeting tomorrow because of the stock's attractive looking valuation and defensive stance within the group.

Maxtor Corporation (NEW) (MXO / NYSE)
Bear Stearns
initiating with an Attractive rating and a price target of $8 - $10, as we think that disk drive industry economics could stabilize owing to both cyclical and secular factors.

Navistar International (NAV / NYSE)
Goldman Sachs
Upgrading to Recommended List from Marketperform. Machinery stocks typically bottom in front of earnings.

Protein Design Labs (PDLI / Nasdaq)
SG Cowen
Downgrading from Strong Buy to Buy, after clinical data on Remitogen is more muted than previously expected.

Parker-Hannifin Corp. (PH / NYSE)
Goldman Sachs
Upgrading Recommended List from Marketperform. Stock typically bottoms in front of earnings.

Stanley Works (SWK / NYSE)
Credit Suisse First Boston
Upgrading to Buy from Hold. Confident that revenues will accelerate in 2002 give greater than expected strenth in its consumer segment and easy comps beginning in January for its industrial business. Expect operating marging to expand more than our previous expectations given its aggregate cost cutting initiatives.

Thornburg Mortgage (TMA / NYSE)
ABN Amro
initiating with an ADD rating, $21 target, 2001 EPS estimate of $1.98 and 2002 EPS estimate of $2.15. TMA's conservative, experienced management is key to its success.

Whole Foods Market (WFMI / Nasdaq)
Piper Jaffray
Downgrade to Buy from Strong Buy on valuation. Raising target and numbers to reflect peer group.

Weight Watchers (WTW / Nasdaq)
Salomon Smith Barney
Initiating coverage with a Neutral rating and $36 target. Leader in global wight loss market. More overwieght people trying to lose weight globally. Compelling financial model.

Weight Watchers (WTW / Nasdaq)
Goldman Sachs
Initiating coverage with Market Outperform and target range of $39-40. Classroom-based commercial weight loss. Uniquely positioned. Debt free by 2004.

Weight Watchers International(WTW / Nasdaq)
Merrill Lynch
Initiating coverage with a near term Buy and long term Strong Buy. Expect revenues to grow at a double-digit pace over time and EPS to grow at 20% near term.

Weight Watchers International(WTW / Nasdaq)
Credit Suisse First Boston
Initiating coverage with a Buy rating and a $41 price target. We believe this is a primier global consumer company with a strong competitive position and compelling growth opportunities.

AmerisourceBergen Corp. (ABC / NYSE)
Bear Stearns
reiterate buy; hosted management for 2 days of meetings, clearly focusing on possible misunderstandings indicated by recent ABC share performance. We see further expansion into specialty distribution, likely attainment of investment grade debt status and the likely largest revenue base/highest service model, in the industry creating a positive ongoing opportunity for ABC.

Accenture (ACN / NYSE)
Salomon Smith Barney
Business momentum strong. Raising Nov EPS by 1c to 22c, 2002 by 6c 86c, 2003 to $1 from 97c and target from $17 to $30.

Amazon.com (AMZN / Nasdaq)
Dain Rauscher
Amazon has purchased two key online competitors; Ourhouse.com andEgghead.com. Also, business quarter-to-date remains strong.

AOL-Time Warner (AOL / NYSE)
Robertson Stephens
Lowering estimates, 2001 $1.20 to $1.18, 2002 $1.27 to $1.24. Target $35. CEO Levin to step down.

American Express Company (AXP / NYSE)
Warburg Dillon Read
Raising estimates following our meeting with the CFO. We now expect the company to earn $1.15 per share in 2001 and $1.95 for next year. Maintain Hold rating.

Bunge Limited (BG / NYSE)
Morgan Stanley Co.
Increasing price target to $28, reflecting operating positives. Reiterate Strong Buy rating.

Bristol-Myers Squibb Co. (BMY / NYSE)
Lehman Bros
Lowering EPS estimates for 2002 and 2003 to $2.50 and $2.86. In addition, price target lowered to $61 reflecting a 10% discount to the group average. We expect a bill from congress to be passesd which shall bring forth generic competition for BMY's Glucophage.

BorgWarner (BWA / NYSE)
Morgan Stanley Co.
Raising price target to $60 based on valuation. Maintain Outperform rating.

CheckFree Corporation (CKFR / Nasdaq)
JP Morgan Chase & Co.
Analyst day on Dec. 13 should clarify CKFR's path to profitability in FY02, which should be enough fuel to support the recent share strength, if not give a further lift to the shares. Reiterate Buy and $30 Price Target.

Danaher Corporation (DHR / NYSE)
Salomon Smith Barney
Aquiring Viridor. Raising price target from $56 to $66.

E*TRADE Group (ET / NYSE)
Warburg Dillon Read
Raising fiscal 2002 estimate to the low-end of management's new guidance. Maintain Hold rating.

E*TRADE Group (ET / NYSE)
JP Morgan Chase & Co.
Raising estimates Q4 from $0.04 to $0.05, 02E from $0.40 to $0.44, 03E $0.55, and Price Target from $8 to $12 (22x03E) after company tightened estimate range from $0.35-$0.49 to $0.40-$0.50. We think things are going well, mort biz and market maker doing well.

Genesis Microchip (GNSS / Nasdaq)
SG Cowen
Raising estimates to met management's new guidance. We now expect the company to earn $0.98 per share in fiscal 2002 and $1.35 for next year.

Halliburton Company (HAL / NYSE)
Morgan Stanley Co.
Cut our price target to $25 due to the estimated loss of $9 billion or market cap as the asbestos issue gains momentum. Reiterate Outperform rating.

Harrah's Entertainment (HET / NYSE)
ABN Amro
raising target from $38 to $41, 4Q01 EPS estimate from $0.31 to $0.34 and 2002 EPS from $2.07 to $2.10 based on current trends in HET's portfolio are tracking ahead of previous projections. Reiterate BUY rating.

Hewlett-Packard Company (HWP / NYSE)
ABN Amro
We maintain our HOLD rating after the David and Lucille PackardFoundation made a preliminary decision to vote against the proposed HP-Compaq merger.

Integrated Device Tech. (IDTI / Nasdaq)
SG Cowen
Reducing estimates after the company lowered guidance. Weakness in Europe and Japan will cause the company to lose $0.27 this year and earn $0.25 in fiscal 2003.

Juniper Networks (JNPR / Nasdaq)
Bear Stearns
CSCO continues to gain mkt share. Investors still have somequestion marks on the ability to deliver the quarter.

Lockheed Martin Corp. (LMT / NYSE)
SG Cowen
Upgrading to Buy. Decision to exit global telecomm is a strong move, offers real and cosmetic EPS pluses. Healthy earnings upswing apt to continue through 2005.

MetLife (MET / NYSE)
Credit Suisse First Boston
Added MET to CSFB Focus list. Anticipate announcement of details ragarding MEt's ability to move real estate investments up to its holding company from its regulated insurance subsidiary. Believe that Met will indicate a smaller and more focused appetite for acquisitions than previous year. Reiterate Buy rating.

Millennium Pharmaceutical (MLNM / Nasdaq)
Dain Rauscher
will present what we believe will be positive Phase II datafrom its LDP-341 program on Monday.

Minnesota Mining & Mfg. (MMM / NYSE)
ABN Amro
maintain ADD rating and $135 target despite HAL's 40% decline on news of its mounting asbestos problems. Reiterate that asbestos is a non-issue for 3M and the while they do have exposure, it is manageable and, from a financial perspective, immaterial.

Nortel Networks Corp. (NT / NYSE)
Bear Stearns
reit attractive; based on several channel checks, tracking below consensus expectations this quarter. Lowering our numbers fourth quarter and 2002. Our new revenue estimate equates to an 8% sequential decline.

Pharmaceutical Product (PPDI / Nasdaq)
Weisel Partners
Management raises guidance; Plans to file oncology IND by end of '03; Increasing est; Reiterate Buy.

Rohm and Haas Company (ROH / NYSE)
Morgan Stanley Co.
Cut fourth quarter EPS to $0.18 to reflect the impact of unseasonably warm weather on sales of road salt. However, increased price target to $45 based on EBITDA estimates.

Charles Schwab Corp. (SCH / NYSE)
Morgan Stanley Co.
Moderately raised 2002 EPS to $0.46. SCH said it will close its brokerage operations in Australia and Japan, both were lossmaking. SCH is making the right moves; maintain Neutral rating.

Siebel Systems (SEBL / Nasdaq)
Dain Rauscher
on target to meet expectations for the current quarter, although we do not expect much upside.

Silicon Laboratories (SLAB / Nasdaq)
Morgan Stanley Co.
Increased price target to $50. Expect earnings to increase dramatically with product diversity. We see significant upside potential to our numbers.

Staples (SPLS / Nasdaq)
Warburg Dillon Read
Raising price target to $25 per share, as the company continues to improve its overall profitability.

UnitedHealth Group (UNH / NYSE)
Lehman Bros
Moderately increasing our 2002 EPS estimate to $3.25. SCS segment is poised to show above expected results, almost doubling its operating earnings.

Vignette Corporation (VIGN / Nasdaq)
Dain Rauscher
Customer activity levels appear healthy, but still a significantamount of business to close within the next few weeks.

Xilinx Incorporated (XLNX / Nasdaq)
Morgan Stanley Co.
Raising price target to $50 and 2002 EPS estimate to $0.23. Expectations for strong earnings leverage should drive stock higher.

Xilinx Incorporated (XLNX / Nasdaq)
Bear Stearns
hosting mid -Q update tonight; we think it guides to high end ofits range - range now is 5 - 10% revenue decline; this is positive for ALTR, XLNX and LSCC - all have seen better turns bookings in Q4 and trending towards top of range

Yahoo! (YHOO / Nasdaq)
Piper Jaffray
Increasing 4Q estimates as higher premium service and commerce fees are combined with stable Ad market. Reiterate Buy.

Robertson Stephens (brokerage)
1999 allover again. ET (Strong Buy) raised EPS guidance for 2002 from 35c-49c to 40c-50c. Datek experienced outages Thursday morning. Datek Nov. volumes up 7% from Oct. Primex launch Dec 17th. 12/14 AMTD and SCH report Nov. activity.

Bear Stearns (Sentiment)
Bullish Sentiment down but still high; SPX 73%, NDX 75%, 5 day moving average 73 and 74%. EQUITY PC/ up to .72, SPX P/C down to 1.48.

Merrill Lynch (Electronics Supply)
Do not believe that the recent rally in our universe of stocks is supported by improving fundamentals. Intermediate term rating on 22 of 23 companies in our supply chain universe remains Neutral or Reduce/Sell.

Goldman Sachs (REITS)
REIT Recession portfolio; Upgrading AIV to Outperform from Neutral and Downgrading EQR to Underperform from Neutral. AIV in and EQR out of portfolio.

Merrill Lynch (Semiconductors)
Sector is expensive, even on 2003 earnings. We find it difficult to continue recommending companies on 50x or 60x 2003 earnings it top-line growth is not very robust. Reducing intermediate-term opinion on TXN and ATML from Buy to Neutral.

Goldman Sachs (machinery)
Upgrading NAV and PH to Recommended List from Marketperform and CAT from Market Outperform to Market Perform. Machinery stocks typically bottom in front of earnings.

Warburg Dillon Read (Strategy)
We see no signs of a recovery yet, and expect a 25 point interest rate cut tomorrow. Consumer confidence seems to be higher for the holiday shopping season, but the return to normal spending will be gradual.

Oscillator: 2.0

No economic releases scheduled today.

Morgan Stanley Coal Conference New York City, NY MEE, ACI, CNX, FDG, ARLP

Cendant Corporation Investor Day

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