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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (5956)	10/9/2002 9:39:15 AM
From: Return to Sender	Read Replies (1) \| Respond to of 95525

Cohen Cuts Targets on the S&P 500 and Dow Wednesday October 9, 8:19 am ET biz.yahoo.com NEW YORK (Reuters) - Goldman Sachs strategist Abby Joseph Cohen on Wednesday cut her targets for the Standard & Poor's 500 index and the Dow Jones industrial average (CBOT:^DJI - News) but said stocks are undervalued at current levels. Cohen cut her 12- to 18-month target on the S&P 500 to 1150 from 1300 and on the Dow to 10,800 from 11,300. "Yesterday's rise in U.S. stock prices was a step in the right direction," Cohen said in a note to clients. "Stocks are undervalued based on our dividend discount model (DDM), which considers several fundamental factors and expectations about investor risk tolerance." But though she said Goldman assumed that the equity risk premium demanded by investors would be above the historical average after the Sept. 11 attacks on the United States, they "did not anticipate the current extreme reading which is near the highs of the past three decades." Recognizing the difficulty in restoring investor confidence, Cohen said in the note, Goldman is raising the required investor risk aversion in its model to near the 75th percentile, which leads to lower calculated fair-value levels. It's a good sign when you see the formerly much more bullish Cohen reining in her expectations that at least a short term bottom is near.