Apogent Tech (AOT) 23.95: Thomas Weisel upgrades manufacturer of laboratory and life science products to BUY from MARKET
PERFORM; believes earnings surprises can occur and drive estimates and internal growth assumptions higher.
SkyWest (SKYW) 30.49: UBS Warburg downgrades to HOLD from STRONG BUY rating and price target of $38 based on price,
potential 2H labor uncertainty, and firm's belief that an additional order for ex-Comair RJs is already factored into the stock.
Cisco Systems (CSCO) 22.05: Thomas Weisel initiates coverage with a BUY and price target of $30; says with continued dominance of
enterprise data networking and increased traction among carriers, CSCO appears to be positioned to deliver 35-40% growth longer-term;
firm's channel checks indicate enterprise spending should bottom in June/July time frame; sees limited downside at this juncture as investors
look "beyond the Valley".
OfficeMax (OMX) 3.61: Announces that Jeffrey P. Freimark has been named company's new Senior Executive Vice President and
Chief Financial Officer, effective immediately; Freimark replaces Jeff Rutherford, who previously held the same position and has resigned
to pursue new opportunities; see press release.
Delta Air Lines (DAL) 47.30: ABN AMRO downgrades to HOLD from ADD as the stock is above long-term target price of $46;
believes that there is limited upside potential in the near-term due to continuing high fuel prices, softness in traffic and yields, as well as the
uncertain economy; also cites the approach of the generally soft Summer months.
AMR Corp (AMR) 37.80: ABN AMRO downgrades to HOLD from ADD as company's stock price has come close to firm's $39
target price and firm believes that stock has limited upside potential in the near term as a result of continuing high fuel prices, softness in
traffic and yields, and the uncertain economy; believes that the airline faces some company specific uncertainties regarding two amendable
labor contracts and the massive job of integrating TWA into its system; also, airline stocks tend to soften approaching the Summer months,
and this year should be no exception.
ISTA Pharm (ISTA) 3.11: Prudential downgrades to HOLD from STRONG BUY rating with price target of $9 as firm anticipates there
will be little news flow until year end and believes some capital risk has already been priced into the stock; while firm believes clinical
development remains on track with over 90% enrollment in pivotal Phase III Vitrase trials for treatment of vitreous hemorrhage, firm does
not anticipate clinical data until Q4 '01; continues to expect a Vitrase NDA in Q1 '02 and FDA approval by late 2002.
Salomon Cuts Drugstores : Salomon Smith Barney downgrades CVS (CVS 55.17) to NEUTRAL from Outperform with a target of
$55 and cuts Walgreens (WAG 40.49) to NEUTRAL from Buy with a target of $40; cites revitalization efforts at Eckerd and Rite Aid,
continued share loss to Wal-Mart, growing competition from supermarket pharmacies, and valuation/macro issues.
Reliant Res (RRI) 34.20: Goldman Sachs initiates coverage with a RECOMMENDED LIST and a 12-month price target of $45; cites
higher net income from owned generation, higher volumes and gross margins at the trading business, and higher than expected energy
revenues.
Centillium Comms (CTLM) 28.03: Salomon Smth Brny downgrades to NEUTRAL from OUTPERFORM rating and price target of
$40; cites loss of Nortel (NT) and potentially Lucent (LU), which will place emphasis on Japanese business; also cuts FY01 estimate to
$0.18 from $0.23 and FY02 to $0.40 from $0.61.
Crane (CR) 29.10: Announces that it has entered a definitive agreement to acquire the Xomox valve business of Emerson for a price of
$145 mln in cash; completion of the transaction is subject to certain regulatory approvals and is expected to close by the end of second
quarter; see press release.
Digital Island (ISLD) 3.35: Provider of managed Internet infrastructure announces a key alliance with Excite@Home (ATHM) to
improve the delivery of high-quality streamed audio and video to Excite@Home's 3.2 million broadband subscribers; as part of agreement,
Digital Island will deploy its Footprint servers to connect at key points on Excite@Home's 15,000-mile network to increase the speed,
performance and reliability of high-value content; see press release.
Computer Sci (CSC) 41.38: Announces it has signed a seven-year, $100 million information technology (IT) contract with Childrens
Hospital Los Angeles to develop its information systems capabilities and to enable it to take advantage of emerging technology; see press
release.
Microsoft (MSFT) 70.91: In response to AOL's recent rate increase, Microsoft's MSN launches a $50 mln switcher campaign with
nationwide advertisements and a limited-time promotional offer, designed to persuade consumers to drop their AOL service and sign up for
MSN Internet Access, offering three months of free internet access and a $21.95-per-month rate guarantee until Jan. 1, 2003; see press
release.
Gemini Genomics (GMNI) 5.60: Clinical genomics company enters into agreement to be acquired by SEQUENOM (SQNM) in a
stock-for-stock exchange; under terms of deal, Gemini holders will receive 0.2000 of a share of newly issued SQNM stock; holders of
Gemini American Depository Shares (ADSs) will receive 0.40 of a share of newly issued SQNM common stock; see press release.
Conoco Inc (COC.A) 31.46: Company's board of directors has unanimously approved agreement to acquire Gulf Canada Resources
Limited (GOU) $8.02 per share in cash or $4.3 bln; Conoco also will assume approx. $2 bln of Gulf Canada's net debt, preferred stock
and minority interests; see press release. |
