NEW YORK (CNN/Money) - Merrill Lynch weighed in on several retailers Monday morning, upgrading Abercrombie & Fitch and cutting its forecast on Jones Apparel, while Lehman Bros. raised its rating on chipmaker R.F. Micro Devices.

In a morning software note, Merrill Lynch raised its rating on retailer Abercrombie & Fitch (ANF: Research, Estimates) to "buy" from "neutral," saying that there is upside earnings potential and that the new women's spring line that hit stores is a standout with an overall strong appeal. On Friday, shares of Abercrombie gained $1.04 to $27.84.

However, the firm lowered its 2003 earnings-per-share forecast for Jones Apparel (JNY: Research, Estimates), to reflect Jones' forecast. Merrill said it expects a decent outlook from Jones, but that continued poor macro apparel trends may continue to pressure the company. Shares of Jones lost 6 cents to $32.68 Friday.

Merrill Lynch reiterated its neutral rating and raised 2003 and 2004 earnings per share forecasts on European software leader SAP (SAP: Research, Estimates). The firm said that in its last quarter, with the exception of some weakness in the U.S. market, SAP continued to gain market share over its major competitors and should keeping do so in 2003. Shares of SAP gained 59 cents to $23.50 Friday.

The firm also reiterated its buy rating, price target and 2003 and 2004 growth estimates for Dow component Honeywell (HON: Research, Estimates) following the firm's analyst meeting last week. Merrill is confident that the firm can meet its targets, but cautions that the prolonged weakness in the domestic commercial aerospace industry could threaten those targets. Shares of Honeywell gained 94 cents to $24.44 Friday.

Lehman Bros. raised its rating on chipmaker R.F. Micro Devices (RFMD: Research, Estimates) to "equal weight" from "under weight." Shares of the stock fell 31 cents to $5.62 Friday.

Additionally, J.P. Morgan cut its ratings on steel producers Steel Dynamics (STLD: Research, Estimates) and Nucor (NUE: Research, Estimates) to "under weight" from "neutral." Shares of Steel Dynamics gained 34 cents to $13.30 on Friday, while shares of Nucor added $1.35 to $39.91.  

-- from staff and wire reports