Verizon Communications
Verizon Communications Inc. [ VZ] kept its "accumulate" rating from Parker/Hunter Inc. last week after the telephone giant's wireless business continued to post gains and second-quarter earnings came in 1 cent per share above the brokerage's estimate. Still, Parker/Hunter lowered its earnings estimates for this year and next year based on the company's disappointing progress signing up customers for high-speed DSL Internet service.

-- Patricia Sabatini

American Eagle Outfitters
Saying it expects back-to-school sales to be worse than expected, Parker/Hunter Inc. downgraded American Eagle Outfitters Inc. [AEOS] to "market performer" from "accumulate." Though the brokerage characterized the merchandise in American Eagle's back-to-school catalog as an improvement over recent seasons, it said the retailer could be hurt by aggressive pricing and improved fashions at discounters including Target and Wal-Mart. The downgrade came the same week that analysts at Merrill Lynch and Wachovia Securities raised their recommendations to "buy'' from "neutral'' and to "outperform'' from "market perform,'' respectively.

-- Joyce Gannon

North Pittsburgh Systems
Parker/Hunter also maintained its "accumulate" rating on North Pittsburgh Systems Inc. [Ticker: NPSI] after the suburban telephone company last week reported better-than-expected second-quarter profits. The brokerage also raised its 12-month price target on the stock from $17 a share to $20. Shares closed Friday at $17.44. North Pittsburgh has offset a decline in business as customers use more e-mail and wireless voice service through sales of broadband Internet service, Parker/Hunter analyst Wayne Homren said. The company also does business in an area -- the suburbs north of Pittsburgh -- that's expanding, he noted.

-- Patricia Sabatini