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

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AnnTaylor Stores Corp. (ANN / NYSE)
Merrill Lynch
Raising near-term rating from Buy to Strong Buy, with a $40 price target. Business is improving, and EPS will receive a one-time lift from the elimination of goodwill expenses.

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Acuity Brands, Inc.(AYI / NYSE)
Goldman Sachs
Initiating coverage as Neutral. NSI split into NSI and AYI on 11/30. Lighting and specialty products. Reported EPS of 28c vs. 3c last year. Lowered 2002 guidance to $1.10-$1.30 from $1.60-$1.80.

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CNET Networks (CNET / Nasdaq)
Piper Jaffray
Upgrade from Neutral to Outperform. Bottomed. Well positioned for comeback in 2002. Initiating $11 target. May exceed current street estimates.

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Compaq Computer Corp. (CPQ / NYSE)
ABN Amro
assuming coverage with a HOLD rating and 2001-2003 EPSestimates of $0.06, $0.11 and $0.29, respectively and believe they face several challenges if the merger with HP is not approved.

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Cognizant Technology Sol. (CTSH / Nasdaq)
Goldman Sachs
Initiating coverage as Outperformer. Application mgmt./outsourcing onsite and via Indian off-shore.

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Dell Computer Corporation (DELL / Nasdaq)
ABN Amro
assuming coverage with an ADD rating and $35 target. Our fiscal 2002 EPS estimate is $0.65, 2003 is $0.74 and 2004 is $0.85. DELL will maintain its dominance as they continue to raise the bar for industry efficiency.

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Estee Lauder Co. (EL / NYSE)
Deutsche Banc Alex Brown
Downgrading from Buy to Market Perform, following the company's earnings warning. The miss was more than we could have ever expected, and our new price target is $29 per share.

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Estee Lauder Co. (EL / NYSE)
Morgan Stanley Co.
Cutting estimates and price target to $32 per share.

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FedEx Corporation (FDX / NYSE)
Goldman Sachs
Reported 2Q (Nov) EPS of 81c vs. our 66c. Breakout of mid-teen trading range is key. Reiterate Outperform. Raising 2001 EPS to $2.26 from $2.11.

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FedEx Corporation (FDX / NYSE)
Credit Suisse First Boston
Upgrading from Hold to Buy, with a price target over $60 per share. The company is finally starting to improve its ground delivery margins, and is effective managing price increases on the mautring overnight segment.

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Federated Department Str. (FD / NYSE)
Merrill Lynch
Upgrading from Buy to Strong Buy, with a $47 price target. Although the company's holiday sales have been disappointing so far, this quarter will mark the bottom for earnings momentum. Earnings improvement at Fingerhut will also add to the bottom-line.

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

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Forest Oil Corporation (FST / NYSE)
JP Morgan Chase & Co.
Upgrading from market perform to long term buy, maintain $30 price target. Shares have underperformed peers year to date in 2001, yet we think co's outlook has improved dramatically over the past few months.

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General Mills (GIS / NYSE)
Bank of America Montgomery
Downgrading from Strong Buy to Buy, with a $59 price target. Also trimming 2002 estimate to $2.15 per share.

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J.C. Penney Company (JCP / NYSE)
Merrill Lynch
Raising near-term Buy rating to Strong Buy, with a $35 price target. Department store comps have exceeded the industry for the past eight months, after fours years of underperformance.

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J.C. Penney Company (JCP / NYSE)
JP Morgan Chase & Co.
Initating with a Buy, 12-month $30 PT. Position rating as a short term Buy as turnaround efforts provide relative operating strength vs peers in short term but long term prospects are mixed.

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KOS Pharmaceuticals (KOSP / Nasdaq)
Deutsche Banc Alex Brown
Initiating coverage with a Buy rating and $47 price target. We believe the company has the best HDL cholesterol drug on the market, and expect other positives to emerge from the pipeline over the next few quarters.

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Limited (LTD / NYSE)
Merrill Lynch
Raising our near-term rating from Neutral to Buy.

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May Department Stores (MAY / NYSE)
Merrill Lynch
Raising near-term rating from Neutral to Buy. May has the strongest margins and return metrics in the department store space. We also believe earnings momentum will shift positive this spring.

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Meristar Hospitality Corp (MHX / NYSE)
Morgan Stanley Co.
Upgrading from Outperform to Strong Buy, with an $18 price target. Also raising estimates, to reflect lower interest expenses.

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MIM Corporation (MIMS / Nasdaq)
Salomon Smith Barney
Initiating coverage with Buy rating and $22 target. Provides pharmaceutical benefits mgmt., mail order prescription and speciatly drug and disease mgmt services to approx. 8.2 million people.

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Mirant Corporation (MIR / NYSE)
Lehman Bros
Moody's downgrade of the company's debt to junk status was surprising and damaging. Our rating is under review, until the company responds in a conference call this afternoon.

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Mirant Corporation (MIR / NYSE)
Salomon Smith Barney
Downgraded from Buy to Neutral following Moody's credit downgrade to non-investment (Ba1) from investment grade (Baa2). Reducing 2002 EPS to $2.10 from $2.45 and target from from $32 to $13

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Mirant Corporation (MIR / NYSE)
Bank of America Montgomery
Trimming estimates and price target to $22 per share. Maintain Buy rating, ahead of the company's conference call this afternoon.

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Morgan Stanley (MWD / NYSE)
JP Morgan Chase & Co.
Upgrading from Market perform to Buy, 12-month PT $64. Lowering 02E from $3.65 to $3.50. Nearing bottom of rev cycle. We think ests are where they should be in 02.

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NOVA Chemicals Corp. (NCX / NYSE)
Deutsche Banc Alex Brown
Initiating coverage with a Market Perform rating and $21 price target.

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Office Depot (ODP / NYSE)
Merrill Lynch
Upgrading from Buy to Strong Buy, with a $22 price target. We believe the company will benefit from decreased store capacity in 2002, much like AZO did this year.

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Palm (PALM / Nasdaq)
NEWS
reported a second quarter loss of 6c/share, a penny narrower than forecasts, but well below the gain of 5c/share in the same period last year

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Palm (PALM / Nasdaq)
Robertson Stephens
Reports 2Q02 a penny above our -7c estimate. Raising 2002 EPS to -19c from -25c. Robust holiday sales. No significant rebound expected. Opportunities in wireless and enterprise markets may offer future upside. Reiterate Neutral.

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Palm (PALM / Nasdaq)
Bear Stearns
Upgrading from Neutral to Attractive given improved business outlook, expected launch of a range of new products, including the long-awaited integrated wireless device with "RIM-like" functionality, improved enterprise strategy, and valuation.

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Pacific Sunwear of CA (PSUN / Nasdaq)
Merrill Lynch
Raising our near-term rating from Neutral to Buy. A changing product mix will be key to growth for 2002.

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Ross Stores (ROST / Nasdaq)
Merrill Lynch
Upgrading from Buy to Strong Buy, with a $37 price target. Improving merchandising is being evidenced by stronger sales figures.

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Sirius Satellite Radio (SIRI / Nasdaq)
SG Cowen
Initiating coverage with a Neutral rating. The company is more leveraged than XMSR, and is more likely to face a cash crunch.

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Solutia (SOI / NYSE)
Deutsche Banc Alex Brown
Initiating coverage with a Market Perform rating and $16 price target.

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Teva Pharmaceutical Indus (TEVA / Nasdaq)
Deutsche Banc Alex Brown
Initiating coverage with a Buy rating and $74 price target. We believe the company is the premier generic drug maker in the market.

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Tiffany & Co. (TIF / NYSE)
Merrill Lynch
Raising our near-term rating from Neutral to Buy. The company will face easy year/year comparisons in 2002, at a time when consumer confidence should be improving.

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Too (TOO / NYSE)
Merrill Lynch
Raising our near-term rating from Buy to Strong Buy, with a $32 price target.

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Tuesday Morning Corp. (TUES / Nasdaq)
Merrill Lynch
Raising near-term rating from Buy to Strong Buy, with a $24 price target. The company's re-building story is proceeding ahead of expectations.

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AT&T Corporation (T / NYSE)
NEWS
T and CMCSK announced that their Boards of Directors approved a definitive agreement to combine AT&T Broadband with Comcast in a transaction that values AT&T Broadband at an aggregate value of $72 billion

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AT&T Corporation (T / NYSE)
Salomon Smith Barney
Upgrade from Neutral to Buy. Raising target from $22 to $25. Transaction with CMCSK to buy AT&T broadband assets for $72 billion.

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Zale Corporation (ZLC / NYSE)
Deutsche Banc Alex Brown
Raising near-term rating from Neutral to Strong Buy, with a $46 price target. We believe the company can meet our EPS estimate for the holiday quarter, and expect improved operating execution in 2002.

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AmerisourceBergen Corp. (ABC / NYSE)
Bear Stearns
announced that CFO Neil Dimick (the prior Bergen CFO) was resigning due to his desire to remain in California, rather than relocate to ABC headquarters in Valley Forge, PA. Re-affirmed FY02 guidance of $2.90 and 1Q02 guidance of $0.62 to $0.63 with revenue growth at the higher end of its previous 15%-17% goal. $78 price target still compelling.

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Accenture (ACN / NYSE)
SG Cowen
The company pre-anounced this morning that it would beat estimates by about 10%. Maintain Buy rating heading into this morning's conference call.

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American Electric Power (AEP / NYSE)
Lehman Bros
Lowering estimates and price target to $43 per share. Mild weather and the weaker economy are cutting into the company's profits. Maintain Market Perform rating.

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Advanced Micro Devices (AMD / NYSE)
Prudential Securities
Reasonable shot at December quarter earnings upside. Strong processor units and ASPs may be somewhat offset by slightly weaker flash memory sales. Introducing 2003 revenue and EPS estimates of $3.7 billion and $0.50. Maintain Sell rating.

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Amazon.com (AMZN / Nasdaq)
Robertson Stephens
4Q sales on track. Significant upside from current estimates unlikely. Raising 2001 operating EPS from -64c to -60c. Long term concerns remain.

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AOL-Time Warner (AOL / NYSE)
ABN Amro
maintain ADD rating and view last night's announced merger ofAT&T Broadband and Comcast positively for AOL. Now the primary issue between AOL and AT&T Comcast concerns the latter party's 20% economic ownership in the Time Warner Entertainment (TWE) partnership.

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AT&T Wireless Services (AWE / NYSE)
Dain Rauscher
lowering 4Q01 net subscriber estimate to 900,000 from 975,000,based on a series of channel checks at AT&T retail stores.Sales appear soft in most markets; however, sales in select markets, primarily in the mid-Atlantic and Southwest U.S., appear on target. Maintain Neutral.

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Biomet (BMET / Nasdaq)
Deutsche Banc Alex Brown
The company beat our November quarter bottom-line estimate by a penny. Maintain Buy rating and $37 price target.

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Biomet (BMET / Nasdaq)
Lehman Bros
Raising price target to $35 per share, although year/year comparisons become more difficult for the next few quarters.

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Biomet (BMET / Nasdaq)
Bank of America Montgomery
Raising EPS estimates to $0.94 in 2001 and $1.10 for next year. Reiterate Buy rating and $33 price target.

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Caterpillar (CAT / NYSE)
Merrill Lynch
The comapny announced a deal last night that will effectively move CAT out of the agricultural equipment market. The sale could be slightly accretive to 2002 earnings.

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Comcast Corporation (CMCSK / Nasdaq)
Bank of America Montgomery
We believe the stock will face near-term pressure because of the immediate dilution caused by the AT&T cable merger. The deal will be fantastic for CMCSK in the long-term though. Maintain Strong Buy rating.

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Calpine Corporation (CPN / NYSE)
Lehman Bros
Raising estimates and price target to $22 per share. Yesterday's $1 billion convertible offering yesterday brought in much needed liquidity. Maintain Market Perform rating.

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Cablevision Systems Corp. (CVC / NYSE)
Dain Rauscher
could be next cable acquisition target - and at a big premium tocurrent levels

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Dollar Tree Stores (DLTR / Nasdaq)
Piper Jaffray
Strong seasonal sales. Reiterate Strong Buy and target of $36.50.

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Emulex Corporation (EMLX / Nasdaq)
Bank of America Montgomery
Raising price target to $45 per share.

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Extended Stay America (ESA / NYSE)
Morgan Stanley Co.
Raising price target to $20 per share. The company's new revolving credit line will give management the freedom to expand its business at a faster pace. Maintain Outperform rating.

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Gillette Company (G / NYSE)
Bank of America Montgomery
Trimming estimates, but raising price target to $40 per share. Reiterate Buy rating, as the company's turnaround is still on track.

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JDS Uniphase Corporation (JDSU / Nasdaq)
NEWS
announced that it has agreed to purchase the optical transceiver business of IBM for $340 million in a combination of cash and stock, of which $100 million will be paid in cash. Additional payments of up to $85 million in cash or stock may be made in early 2003.

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JDS Uniphase Corporation (JDSU / Nasdaq)
Piper Jaffray
Agreed to buy IBM optical transceiver business for $340 million. Deal expected to close in March qtr. Negligible impact on 02 EPS. Expands business and customer base. Reiterate Neutral and $7 target.

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JDS Uniphase Corporation (JDSU / Nasdaq)
Salomon Smith Barney
Plans to acquire IBM's optical transceiver business for $340 million. Reiterate Neutral and $8 target.

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Liz Claiborne (LIZ / NYSE)
NEWS
announced that its Board of Directors has authorized a 2-for-1 stock split of the Company's common stock in the form of a stock dividend, payable on January 16, 2002 to holders of record on December 31, 2001.

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Microsoft Corporation (MSFT / Nasdaq)
Dain Rauscher
AT&T/Comcast merger appears good news for Microsoft as Microsoft's $5 billion investment in AT&T converts into shares.We modified our model to reflect the two-quarter delay in the sale of Expedia. Beyond that, no change yet.

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Paychex (PAYX / Nasdaq)
Deutsche Banc Alex Brown
November quarter earnings came in a penny below estimates. Lowering our fiscal 2002 expectations to $0.74 per share. Maintain Market Perform rating, although further downward revisions are likely.

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Paychex (PAYX / Nasdaq)
Prudential Securities
lowered revenue guidance for FY02 to 9% to 11%, from 13% to 15%. We are lowering our revenue estimates by $31M to $961M and EPS by 3 cents to $0.75. For FY03 we are cutting revenue by $58M to $1.1B and EPS by 5 cents to $0.87. reiterate Hold rating.

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Priority Healthcare Corp. (PHCC / Nasdaq)
Lehman Bros
Raising price target to $40 per share.

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Plexus Corp. (PLXS / Nasdaq)
Robertson Stephens
Lowering estimates for 2002 from 70c to 40c and 2003 from $1.20 to $1.05. Lower margins, fewer sales. Reiterate Buy, still good position and potential.

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Riverstone Networks (RSTN / Nasdaq)
SG Cowen
Raising estimates after better than expected November quarter results. Maintain Buy rating and $19 price target.

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Scholastic Corporation (SCHL / Nasdaq)
Deutsche Banc Alex Brown
Raising 2002 EPS estimate to $2.50, following strong November quarter results. Reiterate Strong Buy rating.

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Versicor (VERS / Nasdaq)
Lehman Bros
Raising price target to $26 per share. With three quality products in its pipeline, we believe the stock unfairly trades at a discount to its peers.

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Yahoo! (YHOO / Nasdaq)
Salomon Smith Barney
Recreation of itself under CEO Terry Semel is a under-appreciated strong positive. Reiterate (with new emphasis) Buy & $22 target.

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Bear Stearns (Sentiment)
All tehnicals mixed. Sentiment flat: SPX 62%, NDX 61%, 5 day moving average 46 and 42%. Equity P/C .61, SPX P/C 1.20. NDX hovering just above the 200 day.

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S&P (S&P changes)
Fairchild Semiconductor International Inc. will replace Ultramar Diamond Shamrock Corp. (being acquired by Valero Energy VLO) in the S&P MidCap 400 Index after the close of trading on December 31.

Merrill Lynch (Specialty Retail)
Raising estimates and/or rating on our universe. We believe these companies will emerge from the dismal holiday shopping season, ready to outperform the market for the coming quarters.

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Oscillator: (0.8)

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8:30 a.m. Initial Jobless Claims (Dec 15) - 440k

12:00 p.m. Philadelphia Fed. (Dec) -15.0

2:00 p.m. Monthly Budget Statement (Nov) -52.0B

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JDSU Group Luncheon with Management (sponsored by DBAB)

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