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

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Second Edition

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

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AutoNation (AN / NYSE)
Morgan Stanley Co.
Upgraded from Neutral to Outperform with a $16 price target. Industry outlook is improving, margin initiatives are paying off, and the valuation looks reasonable.

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Ariba (ARBA / Nasdaq)
Goldman Sachs
Upgrading to Outperform from Neutral. Raising 2002 estimates. Very good results expected when it reports earnings on 1/22.

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Beckman Coulter (BEC / NYSE)
SG Cowen
Upgrading from Buy to Strong Buy, with a $57 price target. We have increased confidence the company will be able to post double-digit sales growth in 2002, with solid contributions from the life science research business.

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Business Objects S.A. (BOBJ / Nasdaq)
Goldman Sachs
Upgrade from Outperform to Recommended List. Raising 2002 EPS from 72c to 78c and setting target of $54. Good sector dynamics. Solid Q4 expected.

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Dendreon Corporation (DNDN / Nasdaq)
Warburg Dillon Read
Downgrading from Buy to Hold, with a $5 price target. It is becoming less likely that the company's phase III prostate cancer vaccine will receive FDA approval.

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Dow Chemical Company (DOW / NYSE)
Warburg Dillon Read
Downgrading from Strong Buy to Hold, because of asbestos uncertainties. Legal filings against the recently acquired Union Carbide spiked in November and December, to over 10 times their previous average levels. Also lowering price target to $30 per share.

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Emerson (EMR / NYSE)
Warburg Dillon Read
Initiating coverage with a Buy rating and $63 price target. We believe the company's siginificant repositioning efforts will bring the stock back to its historical average valuation.

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EOG Resources (EOG / NYSE)
Deutsche Banc Alex Brown
Downgrading from Strong Buy to Buy.

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Forward Air Corporation (FWRD / Nasdaq)
Deutsche Banc Alex Brown
Downgrading from Strong Buy to Buy, based on valuation. Maintaining our estimates, and belief in the company's long-term prospects.

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Ford Motor Company (F / NYSE)
Credit Suisse First Boston
Lowering 2002 EPS estimate to a loss of $0.19 per share, to reflect the company's ongoing restructuring plans. Maintain Buy rating, as patient investors will be rewarded.

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Ford Motor Company (F / NYSE)
Deutsche Banc Alex Brown
Downgrading from Market Perform to Underperform. We believe the company's long-term profit goals are unrealistic, and Ford's stock could fall into the single-digits.

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Hughes Electronics Corp. (GMH / NYSE)
Salomon Smith Barney
Downgrade from Buy to Outperform. Raising target from $18 to $20 based on likely merger outcomes. Recent run up has recognized most of potential. Adjusting 2001 EPS from -34c to -37c and 2002 from 79c to 90c.

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Handspring (HAND / Nasdaq)
Bank of America Montgomery
Upgrading from a Market Perform to a Buy rating with a $10 price target, due to an apparent stabilization in the PDA market, a transition into the much larger and potentially more lucrative wireless device market, and an improvement in cash position with a recent $50 million equity offering.

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Instinet Group (INET / Nasdaq)
JP Morgan Chase & Co.
Downgrading from BUY to long term buy. Lowering Q4 from $0.16 to $0.14, 02 from $0.75 to $0.67, 03 from $0.85 to $0.74, Q4 inline with street, due to issues regarding market share (losses due to Super SOES, and competition from lower priced ECN's) will continue to weigh on shares short term. Continue to like long term. Lowering price target from $13 to $11.

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Informatica Corporation (INFA / Nasdaq)
Morgan Stanley Co.
Upgrading from Neutral to Outperform with a $24 price target. Believe that fundamentals are stabilizing, where valuation looks compelling.

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Ingersoll-Rand Company (IR / NYSE)
NEWS
Announced that Executive VP and CFO David W. Devonshire, will leave the company join Devon Partners, a New York investment banking boutique, as a senior advisor.

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Ingersoll-Rand Company (IR / NYSE)
Salomon Smith Barney
Upgrading from Outperform to Buy. Target raised from $39 to $54. Well below target. 2002 guidance possible. New CFO search. Downside seems limited at these levels.

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Legato Systems (LGTO / Nasdaq)
Goldman Sachs
Upgrade from Neutral to Outperform. Raising 2002 EPS from -1c to 7c. Reporting 1/29. Good results expected, increased guidance and visibility. Suggest accumulation at $20 level.

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Moore Corporation (MCL / NYSE)
Morgan Stanley Co.
Initiating coverage with an Outperform rating and a $16 price target. MCL appears to be in the early stages of a dramatic turnaround. Over the past year, new management has slashed headcount, rationalized overhead, and begun to divest non-strategic assets.

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Micron Technology (MU / NYSE)
Lehman Bros
Upgrading from Market Perform to Buy with a $45 price target. Believe that price move in DRAM is sustainable, possible purchase of Hynix is positive, and seasonal drop in PC/DRAM demand will be matched by supply drops.

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Micron Technology (MU / NYSE)
Lehman Bros
Upgrading from Market Perform to Buy with a $45 price target.

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Scientific Games Corp. (SGM / AMEX)
Lehman Bros
Initiating coverage with a Strong Buy rating and an $11 price target. Good growth and upside potential is paired with a business model in which 80% of revenues are recurring.

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Sears Roebuck & Co. (S / NYSE)
Goldman Sachs
Downgrading to Outperform from Recommended List. Raising target from $50 to $58. Financial strength. Solid credit portfolio. Tough environment. Confident in cost cutting. Needs better growth for Rec. List rating.

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United Rentals (URI / NYSE)
Salomon Smith Barney
Downgrading from Outperform to Neutral. Lowering 2002 EPS from $1.86 to $1.48, consensus is $1.72. Fully valued at these levels. Trimming target from $20 to $19.

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USFreightways Corp. (USFC / Nasdaq)
Credit Suisse First Boston
Downgrading from Strong Buy to Hold, based on valuation. We also have some fears the company's management team is being spread thin.

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Adobe Systems (ADBE / Nasdaq)
Dain Rauscher
Most users are eagerly awaiting the upcoming release of InDesign 2.0 later this quarter and Photoshop 7.0 next quarter.Adobe is scheduled to give an intra-quarter update on January 31st. Maintain Outperform rating.

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Caterpillar (CAT / NYSE)
Prudential Securities
Reit hold and $54 price target. Expect CAT to show earnings improvement in 4Q01 to $0.81. Big issue on conference call is likely to be outlook for 2002 given fundamental declines in some market drivers. 4Q01 earnings scheduled for Jan. 23, 2002

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Concurrent Computer Corp. (CCUR / Nasdaq)
Dain Rauscher
Raising estimates to reflect strong spending expectations by operators for VOD infrastructure in 2002. Raising 12 month price target to $23. Investors should be buying now to take advantage of a strong 2002.

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Check Point Software Tech (CHKP / Nasdaq)
Dain Rauscher
Expecting in-line results 1/15. Business starting to improve.

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Campbell Soup Company (CPB / NYSE)
Lehman Bros
Reducing 2002 EPS estimates to $1.30 due to the unusually warm weather this year.

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Cisco Systems (CSCO / Nasdaq)
JP Morgan Chase & Co.
Negative cover article article in Business Week this week put pressure on stock on Friday. There is nothing new in article, we know stock is expensive, but we believe positive news and upward revisions will help stock. Would buy weakness ahead of quarter.

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Computer Sciences Corp. (CSC / NYSE)
SG Cowen
Raising price target to $66 per share, as we like the company's new turnaround initiatives.

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DoubleClick (DCLK / Nasdaq)
Piper Jaffray
Raising 4Q01 EPS from 29c to 30c and 2002 from $1.23 to $1.26. Solid quarter will provide near-term upside. Reiterate Strong Buy and $65 target.

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eBay (EBAY / Nasdaq)
Piper Jaffray
Increasing 4Q EPS from 12c to 14c, consensus at 13c. Strong 4Q. Lower than expected guidance possible. Reiterate Neutral rating and $53 price target.

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Ecolab (ECL / NYSE)
Warburg Dillon Read
Raising 2002 earnings estimate to $1.80 per share, to reflect various improving operating factors. Reiterate Buy rating.

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Eastman Kodak Company (EK / NYSE)
Deutsche Banc Alex Brown
We believe the company will have to cut its dividend in order to maintain its positive credit rating. Reiterate Underperform rating and $25 price target.

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First Data Corporation (FDC / NYSE)
Morgan Stanley Co.
Raised price target and 2002 EPS estimates to $92 and $3.17, reflecting a higher growth outlook for Western Union.

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Finisar Corporation (FNSR / Nasdaq)
Dain Rauscher
Has secured 2-gig transceiver business from EMC. Gross margins are improving due to mix and manufacturing efficiencies.Management projecting a more positive tone of business

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Harrah's Entertainment (HET / NYSE)
Warburg Dillon Read
Raising fourth quarter EPS estimate to $0.34, based on strong Atlantic City and Riverboat revenues. Maintain Hold rating.

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Linens'n Things (LIN / NYSE)
Warburg Dillon Read
Raising estimates and price target to $28 per share. We now expect the company to earn $1.33 in 2001 and $1.52 for next year, because of increased sales traffic. Maintain Hold rating.

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Lockheed Martin Corp. (LMT / NYSE)
SG Cowen
The company will likely raise 2002 earnings guidance on Friday's conference call. Maintain Buy rating.

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Manpower (MAN / NYSE)
Morgan Stanley Co.
Raised price target to $45 while slightly increasing 2002 and 2003 EPS estimates to $1.62 and $2.53. With our discounted cash flow and evaluation analyses, MAN is poised to recover in the latter half of 2002.

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Motorola (MOT / NYSE)
ABN Amro
Reiterate Hold rating and $15-$16 target and note that MOT'sthree largest divisions, continue to perform poorlyrelative to leading competitors. We also believe that the handset and wireless equipment markets deteriorated in 4Q01, which will make MOT's recovery in 2002 more difficult.

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Oracle Corporation (ORCL / Nasdaq)
Dain Rauscher
Management visits and recent diligence on Oracle's servertechnologies and CRM applications business has revived our optimism in the company's eventual return to growth.Maintain Sector Perform-Average rating and $18 price target.

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Polycom (PLCM / Nasdaq)
Morgan Stanley Co.
Raised 2002 EPS estimates and price target to $0.89 and $43 based on continued growth in demand for core and new products.

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PeopleSoft Incorporated (PSFT / Nasdaq)
Piper Jaffray
Raising 2002 EPS from 66c to 68c. Strong pipeline. Acceleration in license revenue. Will report solid 4Q results. Acquiring Annucio Software. Reiterate Outperform.

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Sanmina Corporation (SANM / Nasdaq)
Goldman Sachs
Lowering aggressive 2002 and 2003 margin expansion assumptions. Demand in key-markets will remain difficult. Lowering target from $30 to $27.

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Scientific-Atlanta (SFA / NYSE)
Weisel Partners
Expect roughly in-line quarter; Valuation rich in light of fundamentals, in our view; Reiterate Market Perform. Concerned that recent investor optimism over SFA's prospects is misplaced and that the stock may be ahead of itself.

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ServiceMaster Company (SVM / NYSE)
Morgan Stanley Co.
Trimmed 2002 and 2003 EPS estimates to $0.66 and $0.77 based on poor visibility.

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Tenet Healthcare Corp. (THC / NYSE)
Credit Suisse First Boston
Raising estimates to $3.15 per share in fiscal 2002 and $4 for next year. We believe the managed care pricing environment will continue to improve over the coming quarters. Reiterate Strong Buy rating and $80 price target.

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Tyco Int'l. (NEW) (TYC / NYSE)
Merrill Lynch
Currently TYCO is trading below valuation with a meager 14 PE on calendar 2002 EPS estimates. Supposed purchase of Honeywell is false and there were no negative articles on TYCO. Reiterate Strong Buy with a $90 price target.

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United Technologies (UTX / NYSE)
NEWS
announced that Karl Krapek will retire at the end of January as the company's President and Chief Operating Officer.

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Viacom (VIA.B / NYSE)
NEWS
announced today that UPN President Dean Valentine will leave the company, effective immediately.

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VeriSign (VRSN / Nasdaq)
SG Cowen
We believe recent concerns stemming from the domain registration business have created an excellent buying opportunity. Reiterate Strong Buy rating.

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WorldCom Group (WCOM / Nasdaq)
Salomon Smith Barney
Lowering EPS estimates for 4Q from 23c to 21c, 2001 from $1.05 to $1.03 and 2002 from 95c to 90c. Reducing target from $22 to $20. Limited visibility of demand. Remains a top pick. Buyers on weakness.

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Wal-Mart Stores (WMT / NYSE)
Warburg Dillon Read
Raising estimates and price target to $70 per share. We now expect the company to earn $1.76 in fiscal 2003 based on improved sales momentum and a turn to profits in Germany.

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Yahoo! (YHOO / Nasdaq)
JP Morgan Chase & Co.
4Q01 results this Wed. Expect to meet ests of $170M/$0.01. Expect sluggish ad results, but solid usage and business services growth. Guidance should be mildly positve. Maintain Market perform.

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Salomon Smith Barney (Semiconductors)
Positive DRAM action reflects broader recovery in coming quarters. Firm micro market last week with 2.2 GHz Pentium 4 introduction. AMD prices down 2% while rolling out XP 2000. Strong reports expected from INTC and AMD.

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Bank of America Montgomery (Energy Technology)
Believe 2002 will be a key transition year, with tech hardware demand returning slowly, favorable federal policies on the way and early-stage companies achieving important milestones. Our top picks are IMGC, CAMZ, and SATC.

ABN Amro (Telecom Equipment)
Companies that will meet or exceed quarterly results areCSCO, our top global pick, as well as EXTR and RBAK. In our view, optical-related firms are still at risk to depressingcapex trends and stocks that are exposed are TLAB and CIEN.

Salomon Smith Barney (Dish-Based Services)
DISH, GMH and PGTV have significant price rise since Sept., approaching their targets. Refelcts improving fundementals and potential upside from a GMH/DISH merger.

NEWS (Portfolio Strategy)
European stocks are lower after Federal Reserve Chairman Greenspan said there are "significant risks" a recovery in the US is failing to take hold.

ABN Amro (Brokers)
Expect 4Q01 results to improve modestly on a sequential quarterlybasis. Improvements should be driven by a combination ofindustry-wide cost-containment efforts and a moderately improvingcapital-markets environment. Our favorite stocks in the industryremain MER and C.

Merrill Lynch (Semiconductors)
Revised semiconductor device revenue forecast for 2002 to 6.5%. Believe year on year camparisons will shift dramatically over the course of the year, with first-half comparisons being sharply negative and the second half being positive. Expect strong growth in microprocessor and DRAM revenue, while weak growth in non-DRAM memory and companies exposed to communications infrastructure. Recommend ADI, STM, MXIM, MU, and SSNLF.

Prudential Securities (Machinery)
Risk of downside surprises appears to be decreasing and we do not anticipate that there will be many downside surprises. There will likely be upside surprises as consensus estimates have decreased in association with declining manufacturing activity and disruptions caused by 9/11 incidents. Best chance for an upside surprise is likely TRW due to cost cutting.

Bear Stearns (Sentiment)
Technicals improve as the indices sell off: SPX bullish sentiment down to 22%, NDX 25%, 5 day moving average 56 and 57%. Equity P/C .64, SPX P/C 1.3.

Deutsche Banc Alex Brown (Hospitals)
The sector will likely outperform the market again in 2002. Pricing trends should continue to positively accelerate, while labor and financign costs will be key expense metrics.

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Oscillator: 2.0

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No economic releases today.

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Nothing For Today
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