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

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Bed Bath & Beyond (BBBY / Nasdaq)
Merrill Lynch
Lowered intermediate term rating to Buy from Strong Buy as the recent appreciation in the stock price has discounted the expectation for healthy performace in challenging environment.

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Captaris (CAPA / Nasdaq)
Piper Jaffray
Upgrade from Neutral to Outperform based on analysis. Target $6.

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Chicago Bridge & Iron Co. (CBI / NYSE)
Lehman Bros
Initiating coverage with a Strong Buy rating and a $30 price target. CB&I is well poised to benefit from the upturn in the hydrocarbon and water markets.

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Circuit City Group (CC / NYSE)
Robertson Stephens
Upgrade from Underperform to Neutral. Raising 2001 EPS by 7c to 85c, 2002 by 9c to 99c and target by $9 to $22. Better than expected sales trend already reflected in price. Good signs heading into holiday season.

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Coach (COH / NYSE)
Salomon Smith Barney
Initiating coverage with a Buy rating and $41 target. Attractive growth story, $1 billion potential. 17% est. Long-term EPS growth rate.

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Computer Sciences Corp. (CSC / NYSE)
JP Morgan Chase & Co.
Downgrading from long term buy to market perform as recent price appreciation has outpaced the current transition in the businesses.

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Delphi Automotive Systems (DPH / NYSE)
Credit Suisse First Boston
Downgrading from Strong Buy to Buy.

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Frontier Airlines (FRNT / Nasdaq)
ABN Amro
downgrading from ADD to HOLD since it has come close toour target price and the traffic recovery is slower than we expected. In the long-term, FRNT's model still works and they will be able to successfully sustain 20% annual growth.

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J.B. Hunt Transport Svcs. (JBHT / Nasdaq)
Credit Suisse First Boston
Upgrading from Sell to Buy.

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Magma Design Automation(LAVA / Nasdaq)
Robertson Stephens
Initiating coverage with Buy rating and $28 target. Next generation leader in design automation.

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Magma Design Automation(LAVA / Nasdaq)
Credit Suisse First Boston
Initiating coverage with a Buy rating and $37 price target.

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Magma Design Automation(LAVA / Nasdaq)
SG Cowen
Initiating coverage with a Buy rating. Business model is solid, expect rapid revenue, margin and EPS growth as subscription layers are build.

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Network Associates (NETA / Nasdaq)
Morgan Stanley Co.
Upgrading from Neutral to Outperform and raised 2003 EPS estimates to $0.67. Believe NETA is experiencing strong demand, forward estimates may prove to be conservative.

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Principal Financial Group(PFG / Nasdaq)
Bear Stearns
Initiating coverage with an Attractive rating and a 12-month price target of $28 per share, which indicates 16% upside.

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Research In Motion (RIMM / Nasdaq)
Lehman Bros
Initiating coverage with a Buy rating. Believe RIM's leadership should continue to command a premium multiple. RIM's bundled mobile Email solution has given it the leading market position and present high barriers to entry.

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Security Capital Group (SCZ / NYSE)
Credit Suisse First Boston
Downgrading from Buy to Hold.

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VCA Antech(WOOF / NYSE)
Goldman Sachs
Initiating coverage with Market Outperformer rating. Largest veterinary services company in the US. Target $14.

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VCA Antech(WOOF / NYSE)
Bank of America Montgomery
Initiating coverage with a Buy rating and a $14 price target. It is the largest owner/operator of animal hospitals and vey-exclusive diagnostic laboratories.

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Accenture (ACN / NYSE)
Morgan Stanley Co.
Raising price target to $27, based on expectations of higher revenue growth, utilization and operating cash flow. Given management's commitmnent to reduce its variable cost structure, ACN shares retain value in a weak economy and appreciate when demand strengthens.

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American Home Products (AHP / NYSE)
NEWS
AHP owns 41% of IMNX and co-markets key arthritis drug.

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Amgen (AMGN / Nasdaq)
NEWS
AMGN and IMNX announced they have signed a definitive agreement, whereby Amgen will acquire Immunex for $16 billion in stock and net cash. Under the terms of the agreement, each share of Immunex common stock will be exchanged for a fixed-ratio of 0.44 shares of Amgen common stock, and cash of $4.50, or a total of 85% in stock and 15% in cash.

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Activision (ATVI / Nasdaq)
Bank of America Montgomery
Raising price target to $30 and third quarter EPS estimates to $0.58 due to strong sales of Tony Hawk titles.

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AT&T Wireless Services (AWE / NYSE)
Robertson Stephens
Lowering 2001 EPS 2c to -10c and 2002 by 12c to 10c. Target $21. Reiterate Strong Buy.

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Anheuser-Busch Companies (BUD / NYSE)
JP Morgan Chase & Co.
After surveying distributors, believe very solid STR improvement in Nov/Dec, and strong pricing. Gives strong comfort with BUD estimates 2%-3%. Nov/Dec comps easier and warmer weather helping. Expect BUD to meet $0.26 estimate, we think stock is good defensive play and could see 5% upside to fair value.

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Bank of America Corp. (BAC / NYSE)
Deutsche Banc Alex Brown
Cutting fourth quarter earnings estimates, because of credit quality concerns.

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Countrywide Credit Ind. (CCR / NYSE)
ABN Amro
We are raising our 2002 EPS estimate from $4.47 to $4.69 as refinancing volumes have remained higher. maintaining our 2003 EPS estimate of $4.30, as we expect the refinancing boom to end within the next 6 months. CCR will announce 3Q01 earnings on 12/21, we expect a solid quarter and reiterate our BUY rating, $57 target.

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Clorox Company (CLX / NYSE)
Goldman Sachs
Raising 2Q (Dec) by 2c to 37c, 2002 by 6c to $1.85 inline with guidance of $1.85-$1.87. Strong volume trends lower costs and lower interest rates.

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Clorox Company (CLX / NYSE)
Deutsche Banc Alex Brown
Raising estimates and price target to $41 per share. Maintaining Market perform rating, because of intense industry competition.

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Calpine Corporation (CPN / NYSE)
Deutsche Banc Alex Brown
Maintain Strong Buy rating, despite Moody's downgrade of the company's debt.

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Cisco Systems (CSCO / Nasdaq)
Dain Rauscher
Channel checks reveal stability; anticipation of strong growth in 2002

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Citigroup (C / NYSE)
Deutsche Banc Alex Brown
Trimming fourth quarter estimate because of weaker business conditions.

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Darden Restaurants (DRI / NYSE)
Piper Jaffray
Reported Q201 EPS of 29c, beating our est. by 1c. Great sales trend. Raising 2002 EPS by 3c to $1.83 and target by $4 to $40. Reiterate Outperform rating.

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Equifax Incorporated (EFX / NYSE)
Morgan Stanley Co.
Increasing 2002 EPS estimates to $1.38, due to adjustment in accounting change. Maintain Outperform rating.

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EMC Corporation (EMC / NYSE)
Lehman Bros
Slightly rasing fourth quarter revenue estimates to $1.39B. Received indications that storage has been stabilizing with an improvement in underlying demand that could lead to continued strong stock performance. Maintain Market Perform rating.

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Freeport-McMoRan C & G (FCX / NYSE)
Goldman Sachs
Raising 2002 EPS by 3c to 57c based on production forecast. Reiterate Recommended List rating and $17 target.

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First Data Corporation (FDC / NYSE)
Morgan Stanley Co.
Raising fouth quarter EPS estimates to $0.73 and 2002 to $3.16, due to operating margin expansion potential and accounting adjustments.

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FedEx Corporation (FDX / NYSE)
JP Morgan Chase & Co.
Expect to beat the street $0.64 estimates due to cost controls driving better margins at FDX Express and stronger ground revs/margins/earnings at FDX ground. Pricing should be weak at FDX Air, we expect Q to continue to fuel speculation that it is gaining from UPS but we think cannibalizing own biz. Stock does not look cheap at 22x, but could be strong on better earnings.

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Fiserv (FISV / Nasdaq)
Morgan Stanley Co.
Raising price target to $45. Fourth quarter EPS could increase substantially, fueled by financial processing, driven by customer conversions and stronger demand for profitable account processing software. Maintain Outperform rating.

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Fannie Mae (FNM / NYSE)
Lehman Bros
Raising fourth quarter EPS estimate to $1.40 and introducing 2003 estimate of $6.72 due to higher than expected margin. Believe FNM is very attractive at its current level based on its consistent earnings growth rate in the mid-teens. Reiterate Strong Buy.

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Ford Motor Company (F / NYSE)
NEWS
filed with regulators to occasionally sell up to $6.5 billion in debt securities, depository and common stock, warrants, contracts, units, and guarantees. The WSJ reported that the auto giant may also lay off workers at US plants that build its Explorer and Taurus lines, to combat expected 4Q losses.

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Ford Motor Company (F / NYSE)
Goldman Sachs
Lowering 2002 by 35c to zero. Higher credit losses. Expect pressure on Ford's net interest margin. CEO resigned Friday, not surprised.

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Goodrich Corporation (GR / NYSE)
SG Cowen
Slightly increased fourth quarter EPS estimates to $3.11, however future is not clear. Asbestos liability continue to loom, and our sum-of-parts valuation suggests that GR could have downside.

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ITT Industries (ITT / NYSE)
Deutsche Banc Alex Brown
Lowering 2002 estimates to match the company's new guidance, but raising price target to $$53 per share. Most year/year improvement will come from lower non-opeating expenses. Maintain Buy rating.

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ITT Industries (ITT / NYSE)
Goldman Sachs
Lowering 2002 EPS by 20c to $3.35. ITT reaffirmed guidance of $3.07-$3.11 for 2001 and new for 2002 of $3.06-$3.26.

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J.P. Morgan Chase & Co. (JPM / NYSE)
Deutsche Banc Alex Brown
Reducing fourth quarter EPS estimate for rising credit costs.

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Kmart Corp. (KM / NYSE)
NEWS
MOODY's downgrades KM to junk status.

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LSI Logic Corporation (LSI / NYSE)
Bear Stearns
Recent checks confirmed that fourth quarter is comfortably tracking expectations of slight sequential growth. We believe bookings have continued to improve during the quarter, although visibility remains limited. Reiterate Buy rating and $29 targetprice.

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Lucent Technologies (LU / NYSE)
Goldman Sachs
Guided lower with range of -23c to -26c vs. our -19c. Return to profits in 02 unlikely. Target range $4-$8.

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Mirant Corporation (MIR / NYSE)
Deutsche Banc Alex Brown
Maintain Buy rating, despite the stock's 37% decline last week. We believe the company's liquidity is not a material problem.

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Micron Technology (MU / NYSE)
Bear Stearns
reports earnings on December 18. Based on recent DRAM market conditions we are raising our revenue estimate for the quarter from $467M to $560M, and our EPS estimate from ($0.36) to ($0.32), versus the consensus of ($0.39). Micron should benefit from stronger DRAM megabit shipments and slight blended ASP improvement from the low point during the quarter. Reit Attractive and raise target from $30 to $40.

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Micron Technology (MU / NYSE)
Bear Stearns
reports earnings on December 18. Based on recent DRAM market conditions we are raising our revenue estimate for the quarter from $467M to $560M, and our EPS estimate from ($0.36) to ($0.32), versus the consensus of ($0.39). Micron should benefit from stronger DRAM megabit shipments and slight blended ASP improvement from the low point during the quarter. Reit Attractive.

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Nortel Networks Corp. (NT / NYSE)
ABN Amro
lowering 2001 EPS estimate from ($1.03) to ($1.13), 2002 from ($0.15) to ($0.50) and introducing a 2003 EPS estimate of($0.15). We would switch from NT shares to ALA in the carrier equipment market or to our top pick CSCO.

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New York Times Co. (NYT / NYSE)
Robertson Stephens
Lowering 2001 EPS by 4c to $1.60. Target $49. Reported lower ad revs for Nov, expect same in Dec.

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Polycom (PLCM / Nasdaq)
Weisel Partners
Channel checks indicate Dec Q on track & pipeline larger than ever; Reiterate Buy.

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R.J. Reynolds Tobacco (RJR / NYSE)
Prudential Securities
wins with its $340 million offer for Santa Fe Natural tobacco; raising our 2002 EPS estimates by $0.27. Reiterate Hold rating while recognizing the positive benefits of this acquisition to RJR's long-term prospects

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Charles Schwab Corp. (SCH / NYSE)
Warburg Dillon Read
Cutting fourth quarter estimate to $0.08 per share, as the company is still right-sizing the business. Maintain Hold rating.

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Stilwell Financial (SV / NYSE)
Morgan Stanley Co.
Slightly lowered fourth quarter EPS estimates to $0.35. Believe tthat Bailey buyback costs, a potential bond put in 2002, lower managed assets, and an unstable holding company structure should continue to weigh on the stock.

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T. Rowe Price Group (TROW / Nasdaq)
Morgan Stanley Co.
Cut 2002 EPS estimates to $1.60 based on the shift toward a higher-fee product mix which will take longer than our previous model reflected.

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Sabre Holdings Corp. (TSG / NYSE)
Goldman Sachs
Raising 2002 EPS from operations by 19c to to $1.60 (down 7% Year to Year). Better than expected price increase and improving travel industry. Cost and headcount cuts. Reiterate Outperform.

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Sabre Holdings Corp. (TSG / NYSE)
Morgan Stanley Co.
Increasing 2002 and 2003 EPS estimates to $1.20 and $1.90, reflecting modestly better-than-expected airline bookings. Raising price target to $40, reiterate Outperform rating.

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United Technologies (UTX / NYSE)
ABN Amro
increasing target from $56 to $74, raising fiscal 2002 EPS from $3.70 to 3.93 and initiating a fiscal 2003 EPS estimate of$4.31 after UTX provided minimum guidance of $3.90 for fiscal 2002 and offered an estimated $0.35/share of cushion.

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Vivendi Universal (V / NYSE)
NEWS
Vivendi Universal announced that it will acquire full control of the entertainment assets of USA Networks in a deal valued at approximately $10.3 billion in cash and stock.

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W.R. Berkley Corporation (BER / NYSE)
Morgan Stanley Co.
Lowering fourth quarter and 2002 EPS estimates to $0.28 and $0.45, reflecting surety reinsurance losses it could incur from exposure to Enron.

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NASDAQ 100 (NDX 100)
Additions: CDWC, CEPH CHTR CYTC ESRX ICOS IDTI IMCL IVGN PDLI SEPR SNPS SYMC. Deletions: ARBA BVSN CMGI CNET COMS INKT LVLT MCLD MFNX NOVL PALM PMTC RNWK

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Bank of America Montgomery (Electricity)
Enron continues to impact the sector as credit agencies are reacting aggresively by downgrading companies in the merchant and power sector. Believe that rating agency's actions is sending severe message to the industry, hampering the ability of many participants to be as profitable as expected. In result we are reducing our ratings and earnings from Strong Buy to Buy for Duke Energy, DYN, MIR, UCU, WMB, IDACORP, and Allegheny.

Warburg Dillon Read (Interest Rates)
Fed easing is not over, and the FOMC will cut another 25 basis points in the January meeting. We also believe the jobless rate will peak at 6.2%.

Bear Stearns (Sentiment)
Sentiment up small, PUT/CALLS flat to down: SPX 22%, NDX 20%, 5 day moving average 28 and 32%. EQUITY P/C .7, SPX P/C 1.26.

Deutsche Banc Alex Brown (Retail)
The sector's post-recession recovery will likely not be as strong as it was is 1991 and 1982. We we avoid second-tier players in this scenario, as current valuations are already pricing in a rebound.

Lehman Bros (Business & Professional Services)
Top picks remain lower economic sensitivity "defensives" with very overcapitalized balance sheets: ADP, ASF, ASGN, EXBD, MMS, PATX, VVI, WSTC.

Deutsche Banc Alex Brown (Banks)
We expect mixed fourth quarter results in the sector. Many of the stocks in our universe already apear fully valued, though the downside EPS risk remains above average. Investors should act with caution.

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Oscillator: (0.5)

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No primary indicators are due for release this morning.

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GE Year-End Analyst Dinner Meeting

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