Ratings Updated: 13-Dec-02
Informatica (INFA) 6.03 +0.03: AG Edwards initiates HOLD.
Suggests to wait on the sidelines until earnings power re-emerges.
Business Objects (BOBJ) 16.06 -0.59: AG Edwards initiates HOLD.
Views equity as proxy for ultimate success of enterprise analytics and intelligence market.
Cognos Inc (COGN) 22.39 -0.31: AG Edwards initiates HOLD.
Primarily on valuation.
Hyperion Solutions (HYSL) 28.33 -0.01: AG Edwards initiates HOLD.
Due to valuation concerns following strong run over past several weeks.
CSX Corp (CSX) 27.90 +0.27: AG Edwards initiates HOLD.
Does not see meaningful downside risk.
Norfolk Southern (NSC) 19.46 +0.27: AG Edwards initiates HOLD.
Does not see meaningful downside risk.
Amgen (AMGN) 50.85 +0.40: Ryan, Beck & Co upgrades Mkt Perform to OUTPERFORM. Target $65.
Cites improving fundamentals in company's leading drug franchises, and belief it will continue to lead biotechnology indices higher as investors reward it for increasing earnings targets and offering robust bottom line growth in near term.
Union Pacific (UNP) 59.88 +0.82: AG Edwards initiates HOLD.
Does not see meaningful downside risk.
Burl Nrth Santa Fe (BNI) 26.36 +0.30: AG Edwards initiates HOLD.
Does not see meaningful downside risk.
Biomarin Pharm (BMRN) 7.79 -0.09: Fulcrum initiates BUY. Target $12.
Cites expectation it will receive positive FDA advisory panel outcome for Aldurazyme for treatment of life-threatening enzyme deficiency, MPS I, and should receive regulatory approval by mid-year and be able to launch product in U.S. by 4Q03.
Bisys Group (BSG) 17.39 -0.61: JMP Securities initiates MKT UNDERPERFORM.
Thinks shares are fully valued at $18.
ELITE Information (ELTE) 8.00 +0.39: Stifel Nicolaus initiates STRONG BUY. Target $12.
Thinks company is well-positioned to continue to gain share within its core legal vertical, as well as expand into additional professional services verticals.
Sprint FON (FON) 14.45 -0.10: Credit Lyonnais Sec downgrades Add to HOLD. Target $14 to $16.
Believes upside for substantial further gains is limited.
Waters (WAT) 20.40 -4.14: Stephens Inc downgrades Overweight to EQUAL-WEIGHT. Target $33 to $24.
As a result of lower growth expectations going forward and uncertainty in growth rates of pharmaceutical capital spending.
Cirrus Logic (CRUS) 3.14 -1.12: Adams Harkness downgrades Buy to MKT PERFORM.
Cites Q3 shortfall; revised outlook creates uncertainty as to whether there is a broad-based slowdown in consumer electronics industry or whether CRUS is simply not gaining traction in its nascent video business.
Cirrus Logic (CRUS) 3.15 -1.11: SG Cowen downgrades Outperform to MKT PERFORM.
Following last night's downward guidance.
Waters (WAT) 20.01 -4.53: Robert W. Baird downgrades Outperform to NEUTRAL. Target $30 to $20.
Cites lower growth expectations going forward and uncertainty in the growth rates of pharmaceutical capital spending.
Sprint PCS (PCS) 5.40 +0.04: Robert W. Baird upgrades Underperform to NEUTRAL. Target $2 to $5.
Cites improving consolidated (PCS/FON) financial outlook and balance sheet, and increasing prospects for a FON/PCS recombination in the future due to integration efforts currently underway.
Gen-Probe (GPRO) 22.63 -0.45: Robert W. Baird initiates NEUTRAL. Target $21.
Believes company will conservatively generate annual revenue growth of 10-12% with EPS growing at 25%-30%; recommends aggressively acquiring stock on significant weakness.
Adobe Systems (ADBE) 25.94 +0.07: Adams Harkness upgrades Mkt Perform to BUY.
Following last night's strong earnings; due to pristine balance sheet and impressive operating margins.
Post Properties (PPS) 25.62 -0.03: Legg Mason upgrades Hold to BUY. Target $29.
Believes that most of the bad news is out on PPS.
Fisher Scientific (FSH) 29.05 -0.08: Legg Mason initiates BUY. Target $38.
Says company is successfully emerging from 1998 leveraged buyout; debt-to-capital ratio, although high at 91%, is manageable, due to debt structure, revenue stability, customer diversity, and free cash flow.
United Dominion (UDR) 15.76 -0.16: Legg Mason downgrades Buy to HOLD.
Cites valuation.
Pepsi Bottling (PBG) 27.23 -1.17: Legg Mason downgrades Buy to HOLD.
Continues to like PBG on weakness, mainly due to Gemex, all else being equal, and would look at becoming more aggressive at lower price.
EDS (EDS) 19.13 +0.25: Soundview Technology upgrades Neutral to OUTPERFORM. Target $18 to $28.
Says news flow appears to have turned positive, valuation remains low.
Linear Tech (LLTC) 28.15 -1.18: Pacific Growth Equities initiates EQUAL WEIGHT.
Cites high valuation and lack of visibility of sustained end-market recovery.
Maxim Integrated (MXIM) 35.48 -1.55: Pacific Growth Equities initiates EQUAL WEIGHT.
Cites high valuation and lack of visibility of sustained end-market recovery.
Newmont Mining (NEM) 28.71 +0.60: Salomon Smth Brny upgrades In-line to OUTPERFORM. Target $30 to $35.
Believes company is more leveraged to rising gold prices in terms of revenue, EPS, and NPV than peers due to its size and relatively-unhedged profile.
Ferro (FOE) 25.56 +1.15: Salomon Smth Brny upgrades In-line to OUTPERFORM. Target $28 to $32.
Based on estimation of very strong cash flow yields in future periods.
DuPont (DD) 43.39 +0.33: Salomon Smth Brny upgrades In-line to OUTPERFORM. Target $50.
With one step closer to economic recovery in Y03, thinks investors are likely to move towards early cyclicals.
Praxair (PX) 55 -1.06: Salomon Smth Brny downgrades Outperform to IN-LINE. Target $60.
With one step closer to economic recovery in Y03, thinks investors will swap out of this defensive name.
Xilinx (XLNX) 20.38 -1.01: JP Morgan initiates NEUTRAL.
Cites valuation and 58% communications exposure.
RF Micro Device (RFMD) 8.49 -0.65: JP Morgan initiates UNDERWEIGHT .
Cites fear of another inventory correction in handsets and subsequent multiple contraction for RFMD; also lack of pricing power.
TriQuint Semi (TQNT) 4.65 -0.19: JP Morgan initiates UNDERWEIGHT .
Share trades at 2.0x CY03 sales estimate; given slowdown in end market growth, continued sluggish end demand and belief in wireless inventory correction in 1Q03, believes stock should trade closer to its trough valuation of 1.5x CY03 sales estimate.
Advanced Micro (AMD) 7.34 -0.41: JP Morgan initiates UNDERWEIGHT .
Due to anemic PC end market growth, precarious balance sheet and aggressive restructuring plan, thinks there is risk to C03 revenue and EPS estimates.
Intel (INTC) 17.68 -0.51: JP Morgan initiates UNDERWEIGHT .
Stock trades at about 26x C04E EPS estimate of $0.71 and 4.5x C03E sales per share estimate; believes fair value for company with long-term growth rate of 7% should be 15x C0E4 EPS or 2.5x sales.
Lattice Semi (LSCC) 8.76 -0.40: JP Morgan initiates NEUTRAL.
Cites valuation and 43% communications exposure.
PepsiAmericas (PAS) 11.26 -4.04: Deutsche Securities downgrades Hold to SELL .
Thinks company is unlikely to keep pace with industry in Y03.
Altera (ALTR) 11.55 -0.59: JP Morgan initiates NEUTRAL.
Cites valuation and 44% communications exposure.
Pepsi Bottling (PBG) 27.27 -1.13: Deutsche Securities downgrades Buy to HOLD.
Concerned over attaining revenue per case targets and lackluster product pipeline from PepsiCo (PEP).
Texas Instruments (TXN) 16.84 -0.60: JP Morgan initiates NEUTRAL.
Although end markets offer strong growth prospects, remains fearful of another inventory correction during 1Q03 as food chain analysis in wireless end market indicates another inventory build.
Microchip (MCHP) 24.71 -1.02: JP Morgan initiates OVERWEIGHT.
Cites strong fundamentals and among the best long-term growth prospects, pricing power, strongest end markets, and superior ROIC.
SPX Corp (SPW) 37.70 -3.95: Banc of America Sec downgrades Buy to UNDERPERFORM.
Due to increasingly eroding fundamentals.
AutoZone (AZO) 70.50 -3.06: Goldman Sachs downgrades Outperform to IN-LINE.
Despite long-term value and sharp decline yesterday, sees few catalysts for outperformance over next 2 qtrs as co. cycles tougher same-store sales comparisons and works down high inventory position.
Activision (ATVI) 15.91 -0.91: Goldman Sachs downgrades In-Line to UNDERPERFORM .
Cites sector downgrade as Nov. NPD data leads firm to believe that industry growth is slowing even more rapidly that it had anticipated when it cut the group in October.
THQ Inc (THQI) 14.32 -0.31: Goldman Sachs downgrades In-Line to UNDERPERFORM .
Cites sector downgrade as Nov. NPD data leads firm to believe that industry growth is slowing even more rapidly that it had anticipated when it cut the group in October.
Electronic Arts (ERTS) 57.58 -3.77: Goldman Sachs downgrades In-Line to UNDERPERFORM .
Cites sector downgrade as Nov. NPD data leads firm to believe that industry growth is slowing even more rapidly that it had anticipated when it cut the group in October.
Westwood One (WON) 37.14 -0.10: Merrill Lynch initiates BUY. Target $41.
Says company is well positioned to benefit from ongoing strength in national radio advertising, a trend that should persist for first half of '03.
Sprint FON (FON) 14.47 -0.08: Lehman Brothers upgrades Underweight to EQUAL-WEIGHT. Target $10 to $16.
Reflects improved outlook for free cash flow at PCS, but sees little upside in shares and believes FON's strategic positioning limits value creation over next few years.
UnionBanCal (UB) 41.10 -0.24: Morgan Stanley initiates EQUAL-WEIGHT.
Cites strong deposit growth and an improving risk profile, but credit issues remain on the balance sheet.
BB&T Corp (BBT) 37.76 -0.13: Morgan Stanley initiates EQUAL-WEIGHT.
Cites strong revenue growth and credit quality, but expects organic growth to decelerate slightly and sees some acquisition risk. |
