CS First Boston downgraded Jones Apparel (JNY ) to hold from strong buy.
Analyst Dennis Rosenberg says he cut his $3.00 2001 EPS estimate to $2.70 to reflect the low end of management's new guidance. He says management provided initial 2002 guidance at $3.40-$3.45 after eliminating $0.30 of goodwill amortization. This represents about a $0.30 shortfall from his estimate, which included goodwill amortization.
Also, Rosenberg says his prior estimate did not include an expected accretion from the McNaughton acquisition. Therefore he cut the $3.70 2002 EPS (pro forma) estimate to $3.40.