CIBC World downgraded its investment recommendation on PacifiCare Health (PHSY ) to hold from buy.
Analyst John Szabo says he's taking a more cautious approach for two reasons. First, he says the weakening high-yield market has led him to increase his projected interest expense on upcoming debt issuance. Also, the turnaround in the California commercial market has been slower than expected.
Szabo cut the $1.65 2001 EPS estimate to $1.25, and cut the $2.30 2002 estimate to 1.70.