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Street Talk: Oracle OK
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November 3, 2000: 9:26 a.m. ET
Analysts boost John Hancock, MBIA, Alliant, Martha Stewart; cut Alcoa
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NEW YORK (CNNfn) - Analysts tried to reassure investors Friday that rumors about Oracle that helped sink the software maker's stock were untrue and that the company is in good shape.
Lehman Brothers analyst Neil Herman said he believes the rumors and trading glitches that pounded shares of information-management software maker Oracle (ORCL: Research, Estimates) Thursday posed a buying opportunity for investors.
Herman said Oracle's pipeline of business in the quarter for both database and applications is strong. Additionally, there is a whole month left in the quarter, which Lehman said is an eternity in the software business.
"Although (Chief Financial Officer) Jeff Henley may indeed retire within the next several years as he is in his upper fifties, we believe that he continues to put his heart and soul into the company and is very focused on being a CFO and meeting with customers and closing business," Herman wrote in a
research note.
On Thursday, rumors that Henley and Chief Executive Larry Ellison were leaving the company, as well as a trading error sent shares of the software giant down $1.81 to close at $29.56.
Lehman reiterated its "buy" rating and $50 price target on Oracle shares.
Goldman Sachs joined in, saying it kept Oracle on its "recommended" list.
Credit Suisse First Boston initiated coverage of another technology company, Internet networking company Cisco Systems (CSCO: Research, Estimates), giving it a "strong buy" rating and a 12-month price target of $85 a share.
Cisco shares closed Monday at $55.75.
Selling insurance
CSFB raised its 12-month price target on John Hancock Financial (JHF: Research, Estimates) to $36 from $27.
The U.S. life insurer said Thursday its third-quarter operating profit rose 22 percent, beating expectations, on strong growth in its individual life and long-term care insurance.
CSFB analyst Caitlin Long said the new price target was based on increasing the company's return on equity forecast to 14.1 percent from 13.7 percent in 2001.
John Hancock shares closed Thursday at $30.
CSFB also raised its price target on shares of MBIA (MBI: Research, Estimates), the No. 1 U.S. bond insurer, on strong new business.
Long raised MBIA's price target to $77 per share from a previous target of $66.
Credit Suisse has a "buy" rating on the stock.
"We raise our price target for MBIA to $77 from $66 to reflect our forecast of strong new business growth and to reflect higher financial sector valuations," Credit Suisse said in a research report.
Shares of MBIA closed Thursday at $67.88.
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CSFB raised its nine-to-12-month price target on Alliant Techsystems (ATK: Research, Estimates) to $105 from $93.
CSFB said its decision reflected increased supply and demand in Alliant's shares as well as upside to its fiscal 2001 profit estimates.
The aerospace and ammunition company on Thursday posted fiscal second-quarter profits that beat Wall Street forecasts.
Its shares closed at $89.88 Thursday.
Lehman Brothers cut its price target and earnings estimates for aluminum company Alcoa (AA: Research, Estimates) due to "weakness in some end markets, sluggish commodity pricing and persistently high energy costs," Lehman said in a research note.
Lehman cut its 2000 earnings estimate to $1.82 a share from $1.87, its 2001 estimate to $2.35 from $2.60 and its 12-month price target on Alcoa shares to $45 from $50.
Alcoa shares closed Thursday at $27.75.
Martha Stewart, Sabre Holdings
CSFB raised its earnings estimates on media and entertainment company Martha Stewart Living Omnimedia (MSO: Research, Estimates) following a strong quarterly earnings announcement.
Analyst William Drewry expects Martha Stewart Living to report earnings of 42 cents in 2000, up from a previous target of 33 cents. For 2001, the firm pegs Martha Stewart Living at earnings of 55 cents versus a prior projection of 47 cents.
CSFB has a "buy" rating on the stock with a 12-month price target of $34 a share.
"Martha Stewart Living Omnimedia reported its fifth upside surprise in as many quarters since going public in mid October 1999," CSFB said in a research note.
Shares of Martha Stewart Living closed Thursday at $28, off a year high of $36.63, but up from a low of $13.06.
Merrill Lynch raised its 12-month price target on travel marketing and distribution company Sabre Holdings (TSG: Research, Estimates) to $47 a share from $38, following an upbeat analyst meeting.
Merrill said several negative factors that have affected the stock appear to be subsiding, and Sabre's outlook is improving.
Shares of Sabre closed Thursday at $35.44.
Cutting Priceline
Goldman Sachs cut its rating on Priceline.com (PCLN: Research, Estimates) to "market perform" from "market outperform" after the company reported a third-quarter loss Thursday that met Wall Street's lowered expectations and announced a restructuring plan under which it will cutlay off 16 percent of its work force.
And Merrill Lynch cut its long-term rating on Priceline to "accumulate" from "buy" and its 2000 earnings estimate to 12 cents a share from 20 cents.
Oilfield services and Sharper Image
Merrill Lynch raised its fiscal 2001 earnings per share view on oilfield services concern BJ Services (BJS: Research, Estimates) to $2.55 from $2.45.
Merrill said it strongly reiterates its purchase recommendation on BJ Services, which combines the best earnings growth outlook with attractive valuation of any oil service stock.
BJ Services forecasts $2.50 for fiscal 2001. Merrill also said it expects BJ Services to post earnings per share of $3.40 for fiscal 2002.
Shares of BJ Services closed Thursday at $56.88.
Goldman Sachs also raised its estimates for BJ Services, boosting its 2001 estimate to $2.70 a share from $2.50 and its 2002 estimate to $3.40 from $3.
 WR Hambrecht analyst Kristine Koerber downgraded retailer Sharper Image (SHRP: Research, Estimates) to "buy" from "strong buy." Koerber said she believes Sharper Image's core business might be decelerating and that any good news for the company -- a strong holiday season and good scooter sales -- may already be reflected in the stock price. 
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