Lucent Sees Higher Revenues

Merrill calls RF Micro pullback a buying opportunity; JP Morgan upgrades key biotechs; plus other stocks in the news

Merrill says RF Micro Devices' (RFMD ) recent stock pullback is a buying opportunity, and reiterates its near-term accumulate rating and long-term buy.

Lucent Technologies (LU ) reaffirmed guidance and believes it will show modest Q3 sequential revenue growth over Q2's $5.915B, and greater sequential improvement over the $0.37 loss in Q2. S&P maintains hold.

JP Morgan upgraded Celgene Corp. (CELG ) to buy from long-term buy.

Dain Rauscher initiated coverage of Mercury Interactive (MERQ ) with buy and a $80 target.

Banc of America raised IDEC Pharmaceuticals' (IDPH ) estimates and reiterates strong buy based on a greater-than-expected demand for Rituxan.

JP Morgan upgraded Proxim Inc. (PROX ) to buy on valuation.

ABN Amro upgraded BEI Technologies ( BEIQ ) to add from hold. On Monday BEI said it recently signed a follow-on contract with a major automotive supplier for quartz GyroChip sensors.

United National Foods (UNFI ) posted $0.22 vs. $0.11 Q3 EPS from operations on a 13% sales rise. United National is on track to meet its previously stated $0.22-$0.25 Q4 EPS guidance and sees $1.02-$1.06 fiscal 2002 (July) EPS.

Columbia Financial of Kentucky (CFKY ) agreed to be acquired by Camco Financial Corp. (CAFI ) for 0.3681 Camco share plus $6.90 cash.

Dain Rauscher initiated coverage of Christopher & Banks (CHBS ) with buy.

Lehman upgraded JC Penney (JCP ) to strong buy from buy.

FleetBoston (FBF ) agreed to acquire Liberty Financial's (L ) asset management units for over $1B, including debt assumption. Liberty also agreed to a going private deal with its controlling holder, Liberty Mutual Insurance Co. Liberty holders will get $33.44 per share. S&P maintains buy on FleetBoston.

Comverse Technology (CMVT ) posted $0.43 vs. $0.32 Q1 EPS on 36% sales rise. Salomon upgraded to buy. Lehman raised estimates. S&P maintains accumulate.

Due to settled patent infringement litigation with Pitney Bowes, Hewlett-Packard (HWP ) restated Q2 EPS (GAAP) to $0.03 (before an extraordinary gain) vs. previously reported $0.15.

Elantec Semiconductor (ELNT )sees $0.06-$0.08 Q3 EPS and a 30%-35% Q3 revenue decline, citing continued softness in its communications business.

Myriad Genetics (MYGN ) discovered the human gene responsible for high total cholesterol and low HDL in individuals with early age myocardial infarction. Ladenburg reiterates strong buy.

Human Genome (HGSI ) says its investigational new drug application for Albutropin, a long-acting recombinant growth hormone, has been cleared by FDA. JP Morgan upgraded to buy from long term buy. Needham reiterates buy.

Lear Corp. ( LEA ) says the 60,000-unit Explorer, Ranger production cuts announced by Ford are expected to reduce Lear's 2001 EPS by about $0.13. CS First Boston keeps strong buy; S&P keeps hold. Goldman cut estimates.

Xilinx (XLNX ) maintains its Q1 revenue guidance of a 15%-25% sequential decline, saying the turns business improved in May, and that cancellations and pushouts have slowed "considerably". S&P maintains buy. Robertson Stephens reiterates buy.

Millennium Chemical (MCH ) expects Q2 results to be in line with Q1's $0.11 operating loss. Millenium cited weaker than expected demand and pricing for titanium dioxide, ethylene and polyethylene. S&P and Merrill cut 2001 estimates.

Furniture Brands (FBN )sees $0.25-$0.30 Q2 EPS, excluding reorganization and other charges, on a 12%-15% revenue decline. The company says it will have permanently reduced its workforce by 12% and reduced its manufacturing capacity by 15% by year-end.

At Home Corp. (ATHM ) says it is in talks with Comcast and Cox Communications to explore the restructuring of its commercial relationships with these companies.

Dycom Industries (DY ) posted a better-than-expected $0.31 vs. $0.40 Q3 EPS from operations on a 5% contract revenue decline. Dycom set a $25M stock buyback.

Boeing (BA ) says it was awarded a contract to modernize the U.S. Air Force's C-130 Fleet.

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