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

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Automatic Data Processing (ADP / NYSE)
Lehman Bros
Initiating coverage with a Buy rating and a $70 price target based on a conservative 25-year discounted free cash flow valuation. ADP has posted 161 consecutive quarters of record revenues and EPS, and 40 straight years of double-digit EPS growth, the longest such track record of any U.S. public company.

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Ball Corporation (BLL / NYSE)
Salomon Smith Barney
Downgrade from Outperform to Neutral based on valuation. Limited near-term upside. Positives priced in already. Well positioned for 2002, buy on pullbacks. Target $68.

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Bristol-Myers Squibb Co. (BMY / NYSE)
ABN Amro
downgrading from BUY to ADD and are lowering our targetfrom $70 to $60 as we believe there is risk in the current earnings number, particularly if Glucophage generics enter the market in early 2002.

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Comverse Technology (CMVT / Nasdaq)
Morgan Stanley Co.
Raising rating to Outerperform from Neutral with a price target of $28, based on the sequential stabilization in orders and guidance for sequential stability in backlog into January.

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Comverse Technology (CMVT / Nasdaq)
Goldman Sachs
Reported 3Q rev/EPS of $295m/11c in-line with pre-announcement. Stabilizing business, cost savings, cautious near-term. Lowering EPS for 2001 by 1c to 87c, 2002 10c to 60c. Reiterate Recommended List rating.

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Frontier Airlines (FRNT / Nasdaq)
Merrill Lynch
Initiating coverage with an intermediate-term and long-term Strong Buy with a price target of $23. Frontier offers low cost, affordable fare service to price-sensitive travelers from its hub in Denver to 27 US destinations in 19 states.

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Integrated Device Tech. (IDTI / Nasdaq)
Merrill Lynch
Initiating coverage with an intermediate term Neutral and long term Strong Buy. Currently IDTI is rihly valuated, however it is in excellent position in the communications semiconductor market, which we believe will outperform the overall industry during the next upturn.

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Kroger Company (KR / NYSE)
Bear Stearns
Downgrading from Buy to Attractive to reflect near term weakness; third quarter earnings in line; lowering numbers.

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Kroger Company (KR / NYSE)
Warburg Dillon Read
Reducing estimates and price target to $20 per share. The company significantly reduced its EPS guidance after the close, which we believe could affect the entire industry. Maintain Hold rating.

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Kroger Company (KR / NYSE)
JP Morgan Chase & Co.
Upgrading from market perform to Buy after stock down 22% in last 3 days. Earnings estimates now look realistic. Attractive looking risk/reward (we like the stock at $18-$20) within range where stock has previously bottomed.

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L-3 Communications Hldgs. (LLL / NYSE)
Lehman Bros
Initiating coverage with a Strong Buy with a price target of $105. L-3 is still growing 20% per year, and is likely to continue to meet and even exceed this goal for several more years with higher margins and better cash flow than any company in the industry.

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Midwest Express Holdings (MEH / NYSE)
Merrill Lynch
Initiating coverage with an intermediate-term Buy and long-term Strong Buy. MEH provides a "pure play" for investors seeking to capitalize on the return of business. Furthermore, new service from Kansas City provides the company with profitable growth opportunities to fuel EPS increases.

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Merck & Co. (MRK / NYSE)
Bear Stearns
Neutral rated; provided 2002 EPS guidance $0.27 lower than consensus of $3.40, indicating no earnings growth in 2002, and forecasts "double-digit" growth in 2003. The shortfall was again attributed to disappointing Vioxx sales. Lowering our 2002, 2003, and 2004 EPS by $0.28, $0.32, and $0.26, respectively. 2002-2005 growth rate approximately 10%.

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Merck & Co. (MRK / NYSE)
Goldman Sachs
Severely disappointing guidance overshadows positive comments. Lowering 2002 EPS by 25c to $3.15. Target $76, recommended list.

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Merck & Co. (MRK / NYSE)
Warburg Dillon Read
Reducing price target to $69 per share, after the company cut its 2002 EPS guidance. Maintain Buy rating.

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Merck & Co. (MRK / NYSE)
ABN Amro
downgrading from BUY to ADD, lowering our target from $85to $75 and lowering our 2001 EPS estimate from $3.15 to $3.13, 2002 from $3.46 to $3.14 and 2003 from $3.80 to $3.44. MRK's outlook is expected to be flat with 2001, representing an approximately $0.30 haircut from consensus expectations.

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Merck & Co. (MRK / NYSE)
Credit Suisse First Boston
Downgrading from Buy to Hold and new lowered price target of $67. There are continuing signs of gross margin erosion in its core pharma business.

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Micromuse (MUSE / Nasdaq)
Prudential Securities
initiating coverage with a Hold rating and 12-month price target of $15. NetCool has rapidly risen to the #2 share position in the network fault management market.

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Wild Oats Markets (OATS / Nasdaq)
Dain Rauscher
Initiating coverage with a Neutral rating

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Procter & Gamble Co. (PG / NYSE)
Goldman Sachs
Raising 2002 EPS by 2c to $3.49 based on guidance. Reiterate Recommended List rating based on improved outlook stemming from cost savings programs.

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Procter & Gamble Co. (PG / NYSE)
Morgan Stanley Co.
Raised second quarter 2002 EPS estimate to $1.03 to reflect better mix/pricing than expected and higher gains from non-operating income.

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Procter & Gamble Co. (PG / NYSE)
NEWS
announced it expects volume, sales, and earnings growth for the December 2001 quarter to be at the upper end of prior guidance. In the second quarter update, the company said it sees earnings coming in 2c to 3c/share above Street expectations.

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Procter & Gamble Co. (PG / NYSE)
JP Morgan Chase & Co.
Upgrading from long term buy to buy, raising price target from $80 to $88 after last night preannouncement of sales and operating profit above estimates which signals that the company is turning the corner. Valuation looks attractive at 9% disc on 02E.

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Procter & Gamble Co. (PG / NYSE)
Lehman Bros
Upgrading to Strong Buy from Buy and raising price target to $95. PG is beginning to deliver sustainable earnings growth, driven mostly by an improvement in unit growth.

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Qwest Communications Int. (Q / NYSE)
Dain Rauscher
Initiating Coverage With Neutral, Recommend a Wait and See StanceBreak up suggests long haul business is almost "all upside"

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Spinnaker Exploration (SKE / NYSE)
Bank of America Montgomery
Upgrading from Buy to Strong Buy with a price target of $58, based on improved valuation in the wake of yesterday's production shortfall.

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Safeway (SWY / NYSE)
Warburg Dillon Read
Downgrading from Hold to Reduce, with a $37 price target. We believe KR is increasing its competitive stance in the industry, which will negatively affect the company.

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Veritas Software Corp. (VRTS / Nasdaq)
Salomon Smith Barney
Upgrade from Outperform to Buy. Raising target from $40 to $56. Training session attendance rise points to future business increase. Expecting VRTS to beat numbers.

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Accenture (ACN / NYSE)
Warburg Dillon Read
Raising 2002 EPS estimate and price target to $30 per share. Maintain Buy ating, despite the recent 90% gain in the stock.

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Analog Devices (ADI / NYSE)
Weisel Partners
expects to grow faster than industry; continues to gain share inDSPs; Maintain Buy.

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Alkermes (ALKS / Nasdaq)
Robertson Stephens
Positive phase II data on Medisorb naltrexone. Increased visibility. In-house pipeline increased. Lowering target by $1 to $34.

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AVX Corporation (AVX / NYSE)
Warburg Dillon Read
Raising price target to $30 per share. We believe that industry fundamentals will improve in the March quarter.

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AT&T Wireless Services (AWE / NYSE)
Goldman Sachs
Raising funds via $4 billion shelf registration for equity. Move expected. Any weakness this causes is a buying opportunity. Reiterate Recommended List and $21 target.

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Agilent Technologies (A / NYSE)
Goldman Sachs
Raising price target from $35 to $40 and reiterate Market Outperformer rating after analyst meeting. On plan (for loss), pickup in demand, tough enviroment.

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Baxter International (BAX / NYSE)
JP Morgan Chase & Co.
Reiterate Buy after we hosted a lunch with the CEO of BAX, Harry Kraemer. Furthered our conviction in BAX's growth prospects over the next 3-4 yrs, as good as any company in the medical products space. Our estimate calls for 13% sales growth and 16% EPS growth through 05.

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Bruker Daltonics (BDAL / Nasdaq)
Weisel Partners
Shares oversold, in our view; visibility remains strong; Reiterate Buy.

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Cendant Corporation (CD / NYSE)
Morgan Stanley Co.
Increased price target to $23 with a 2002 EPS estimate $1.26. After CD's investor meeting, company said upward revisions for 2002 are likely based on current trends in its business. Maintain Outperform rating.

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Ciena Corporation (CIEN / Nasdaq)
Bear Stearns
reports fourth quarter earnings tomorrow. Has already pre-released revenues and given an earnings range in-line with our and consensus estimates. The main focus will be guidance for 2002. We believe Ciena will lower its guidance to slightly below consensus expectations. We remain cautious on the optical networking sector in particular, but recognize that Ciena is the best positioned company within the segment.

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Cooper Companies (COO / NYSE)
Dain Rauscher
Fiscal 4Q01 of $0.76 vs. $0.63 exceeded our $0.73 estimate.Strength in international markets, particularly in Europe, droverobust 14% revenue growth and continued market share gains for CooperVision. Reaffirmed 2002 guidance of $265-$275 in revenues and $3.00-$3.05 in EPS. Maintain Strong Buy-Aggressive rating and $54 price target.

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Compaq Computer Corp. (CPQ / NYSE)
Morgan Stanley Co.
Cut price target to $24 to represent a more reasonable number. Channel checks indicate that sales are tracking our estimates, where storage and industry standard servers appear to be making positive progress. Maintain Outperform rating.

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Doral Financial Corp. (DORL / Nasdaq)
Warburg Dillon Read
Raising estimates to $2.79 per share in 2001 and $3.50 for next year. The sharp and sustained rise in the interest spread will continue to benefit DORL. Maintain Strong Buy rating.

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Duke Energy Corporation (DUK / NYSE)
Morgan Stanley Co.
Believe that concerns about merchant energy are pressuring DUK shares. DUK's diversity in business, risk management, and strong balance sheet differentiate it from its peers. Expect gas infrastructure to drive 2002 growth. Reiterate Strong Buy.

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FactSet Research Systems (FDS / NYSE)
Credit Suisse First Boston
Raising price target to $39 based on a blended EBTDA and earnings multiple.

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Harrah's Entertainment (HET / NYSE)
Merrill Lynch
Raising 2001 and 2002 estimates to $1.95 and $2.33 with a price target of $42. Given that HET generates roughly 50% in EBITDA from the riverboat markets, and is the largest operators of these assets, we believe it is benefiting from these strong fundamentals.

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JDS Uniphase Corporation (JDSU / Nasdaq)
Goldman Sachs
Analyst day, better cost reductions than expected. Positive long-term. Near-term volatility.

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Kemet Corporation (KEM / NYSE)
Warburg Dillon Read
Raising price target to $23, and reiterating Buy rating.

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May Department Stores (MAY / NYSE)
Warburg Dillon Read
Lowering estimates, as we believe high inventory levels will lead to deeper discounting this Holiday season. We now expect the company to earn $2.26 this year and $2.64 in 2002.

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Medtronic (MDT / NYSE)
Morgan Stanley Co.
Raising price target to $58 and lowering January quarter EPS estimates to $1.21. Management looks on track to meet consensus revenue and EPS expectations, while adjusting for slightly higher than expected tax rate. Maintain Strong Buy.

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Medtronic (MDT / NYSE)
Warburg Dillon Read
Raising our fiscal 2003 estimate to $1.45 per share, based on the company's lower expected tax rate.

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Medtronic (MDT / NYSE)
Robertson Stephens
Slightly lower sales. 2002 EPS lowered 1c to $1.21. Reiterate Buy and target of $56.

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Medtronic (MDT / NYSE)
Piper Jaffray
Overall guidance steady. Interventional Vascular busniess weak. Reiterate Outperform and $53 target.

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MetLife (MET / NYSE)
Morgan Stanley Co.
Raising 2002 EPS estimate to $2.55 to reflect greater confidence in MET's ability to turnaround property casualty.

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Microsoft Corporation (MSFT / Nasdaq)
NEWS
10:00 a.m. Hearing on the future of the Microsoft settlement before the Senate Judiciary Committee.

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Nokia Corporation (NOK / NYSE)
Bear Stearns
Reit Attractive; held its mid-quarter update and reaffirmed 4Q01 guidance, but refused to further discuss its 2002 prospects, after giving 2002 guidance at its recent capital markets day.The company appears to be gaining market share in the TDMA and markets, especially the low-end. Raising estimates.

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Prudential Financial, Inc.(PRU / NYSE)
NEWS
Initial Public Offering Pricing; Lead Underwriter Goldman, Sachs & Co.; Expected Price $25.00-$30.00 Total Shares 110,000,000 Est. Offering Amount $3,889,300,000.00

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United Technologies (UTX / NYSE)
ABN Amro
maintain ADD rating ahead of investor presentation tonight; expect several factors will support an outlook that is more likely to beat investors' expectations. We believe our fiscal 2002 EPS estimate of $3.70 may prove to be conservative.

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Vishay Intertechnology (VSH / NYSE)
Warburg Dillon Read
Raising price target to $27 per share. Our leading indicator for the industry has turned positive, signaling a rebound by next spring.

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Bear Stearns (Sentiment)
Bullish sentiment down small at lower levels: SPX 28%, NDX 40%, 5 day moving average 61 and 67%. EQUITY P/C up to .69.

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Lehman Bros (Oil & Gas)
Reiterate caution on Exploration and Production shares. Over the next several months spot neutral gas prices are likely to average far below the long term price that we believe is reflected in share levels. Meaningful recovery in spot gas prices is unlikely to occur before mid-year 2002 as production falls. Downgrading EOG to Market Perform.

Warburg Dillon Read (Chip Equipment)
We continue to see signs that the order bottom will be formed this month. Our favorite company remains NVLS.

ABN Amro (Brokerage)
brokers are expected to release 4Q01 results next week. Expect results to be dismal amid challenging industry conditions and project that Y/Y declines will average 42% for the quarter and 32% for the full year compared with record results in 2000. Our favorite independent broker remains MER because we believe it is by far the most attractive on a relative price to book basis.

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8:00 a.m. MBA Purchase Applications Index

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8:30 a.m. Import & Export Prices

Oscillator: 1.0

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Jones Apparel Group, Inc. Footwear and Retail Business Strategy Meeting

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Cypress Semiconductor Hosts WebGuild Meeting

Raymond James IT Supply Chain Conference New York, NY TECD, VSH, PIOS, PMRY, SANM, SCSC, AVT, BELM, BHE, CDWC, CLS, CMPC, DELL, GTSI, IM, NSIT, JBL, ODP, MOLX, PCCC

Healthsouth Corp. analyst meeting

CD Investor Day

YUM Analyst/Investor Meeting

UTX Year End Investor Meeting

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