Analyst downgrades 10/02/06: Apple gets sliced

MOST NOTEWORTHY: Apple Computer, Inc. (NASDAQ:AAPL), First Data (FDC) and ASM International (ASMI) top today's extensive downgrade list.

• Apple was downgraded to Hold from Buy at Citigroup, citing valuation and the unlikely introduction of the new video iPod before the holiday season.
• First Data was downgraded to Neutral from Overweight at J.P. Morgan based on valuation and expectations of a Q3 miss.
• CIBC downgraded ASM International to Sector Performer from Sector Outperform based on checks that indicated Intel (INTC) is pushing out adoption of ASMI's atomic layer disposition tool for high-k at 45mn. They note a delay would be positive for Applied Materials (AMAT).

OTHER DOWNGRADES:

• Due to the change in management and lowered guidance, both Credit Suisse and KeyBanc/McDonald downgraded IT service provider Keane (KEA).
• ThinkEquity downgraded CryptoLogic (CRYP) to Source of Funds from Accumulate based on the ratification of the Internet gambling bill that will impact earnings.
• Boston Beer (SAM) was downgraded to Neutral from Overweight on valuation.
• USA Truck (USAK) was downgraded by Stephens to Underweight from Equal Weight, citing a less certain 2007 trucking environment and the recent stock offering.

Ratings summary provided courtesy of TheFlyOnTheWall.com.