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Street Talk: Dirty laundry
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December 27, 2000: 9:29 a.m. ET
Maytag, Whirlpool only warrant 'hold' rating; Visx gets a wary eye
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NEW YORK (CNNfn) - Maytag and Whirlpool, two of the leading appliance makers, were rated a mere "hold" by Credit Suisse First Boston early Wednesday because of concerns about the outlook for the industry.
Credit Suisse First Boston warned that management changes at Maytag (MYG: Research, Estimates) introduce "an uncomfortable instability" during a difficult period for the industry. The investment bank projected earnings of $2.97 a share this year, $2.46 a share in 2001 and $3 a share in 2002.
Meanwhile, rival Whirlpool (WHR: Research, Estimates) "faces difficult operational challenges over the next year that will be exacerbated by declining volumes, tough pricing and the ongoing shift in the distribution channel for major appliances," according to CSFB.
The firm's earnings estimates for Whirlpool are $5.20 a share this year, $5.09 a share next year and $5.85 a share in 2002.
Visx (EYE: Research, Estimates), the laser surgery equipment maker, was placed under review by Robertson Stephens analyst Wade King after it warned of lower-than-expected fourth-quarter results.
King currently rates Visx a "buy," and sees 2000 earnings at 80 cents a share, rising to $1.05 a share in 2001.
The verdict wasn't all negative for computer security products maker Network Associates (NETA: Research, Estimates), which late Tuesday warned of a fourth-quarter loss rather than the previously expected profit. While Robertson Stephens analyst Dane Lewis did slash his 2000 earnings estimate to 9 cents a share from $1.01, he raised the 2001 forecast to $1.27 a share from $1.22.
The 2000 earnings estimate for Freeport-McMoran Copper & Gold (FCX: Research, Estimates) was lowered by Goldman Sachs to 11 cents a share from 14 cents due to lower-than-expected gold prices in the fourth quarter. The firm maintained a "market outperformer" rating on the company.
Goldman also cut the fiscal fourth-quarter estimate for women's apparel retailer Intimate Brands (IBI: Research, Estimates) to 56 cents a share from 58 cents.
But Goldman was more positive about other companies, calling gas pipeline operator Williams Cos. (WMB: Research, Estimates) "significantly undervalued" and recommending that investors be "overweight" in the beverage sector, including Coca-Cola (KO: Research, Estimates).
-- from staff and wire reports 
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