graphic
Markets & Stocks
Street Talk: Ford cut
August 29, 2000: 3:49 p.m. ET

Dresdner lowers the automaker's rating but PaineWebber maintains a 'buy'
graphic
graphic graphic
graphic
NEW YORK (CNNfn) - Citing concerns about Ford Motor's credibility after the Firestone tire recall, Dresdner Kleinwort Benson downgraded the automaker's stock to "add" from "buy" Tuesday.

In a note to clients, Dresdner Kleinwort Benson analyst David Garrity said the recall undermines Ford's efforts to place responsibility on Bridgestone/Firestone.

But PaineWebber reiterated a "buy" rating on Ford Motor (F: Research, Estimates) despite a class action suit filed Tuesday against both Ford and Bridgestone (BRDCY: Research, Estimates) regarding the Firestone tire defects. The investment firm believes Firestone will bear the brunt of the liability.

Despite recent concern about the impact of a slowdown in advertising spending at many dot.com companies, PaineWebber kept its "buy" rating and $185 price target on Yahoo! (YHOO: Research, Estimates).

Although it expects advertising to be weak over the next six weeks, the brokerage views the leading Internet portal's sell-off as "overdone."

On Monday, Lehman Brothers expressed caution about the company's third-quarter revenue outlook.

Shares of Yahoo! fell 44 cents to $121.63 in late afternoon trade.

Meanwhile, Bear Stearns kept its "buy" rating on American Home Products (AHP: Research, Estimates) after a federal judge on Monday approved a $3.75 billion negotiated settlement that the drug company reached with users of its diet drugs Pondimin and Redux.

Analysts were bullish on two online business-to-business service graphiccompanies. Credit Suisse First Boston said current momentum was strong for VerticalNet (VERT: Research, Estimates). The brokerage noted the Internet content provider's recent joint venture with Japan's Softbank will likely have impressive returns.

And Donaldson, Lufkin & Jenrette initiated coverage of ValiCert (VLCT: Research, Estimates) with a "buy" rating and 12-month price target of $20.

DLJ said the company, which provides e-commerce software that allows companies to conduct e-transactions over the Internet, had a "compelling" valuation.

It forecasted total revenue for 2000 at $11.2 million and 2001 revenue at $24.8 million, an annual growth rate of 121 percent.

ValiCert slipped 44 cents to $13.

In other ratings, S.G. Cowen began coverage of chipmaker Microtune (TUNE: Research, Estimates) with a "strong buy" rating, noting it expects dramatic revenue growth over the next several years. Back to top

--compiled from staff and wire reports

  RELATED SITES

Latest upgrades

Latest downgrades

Initiated coverage

Stock split calendar

IPO's

Earnings warnings

Economic calendar

View the latest market update via Netshow

See how your mutual funds are doing

Need investing advice? Try Quicken.com on fn

Track your stocks

U.S. stock markets

Widely held stocks


Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney




graphic