BUY Cosco Pacific Kim Eng Securities has initiated coverage on the port operator with a 'buy' recommendation on the back of visible earnings growth in port maintenance in China. In light of strong throughput growth in the Chinese ports, analyst Jimmy Lam estimates Cosco's bottom line will rise by 12 per cent this year. Cosco also has plans to invest $170 million in Tianjin and Qingdao Qianwan ports, which, Mr Lam believes will provide potential earning drivers for Cosco. He has a valuation of $8.04 on the counter, representing 5.7 per cent upside potential against the closing price of $7.60. SELL Clear Media JP Morgan has downgraded its rating on the Chinese outdoor media firm from 'overweight' to 'underweight' on the uncertain near-term outlook of the mainland advertising market clouded by Sars. Analyst Kristian Jhamb said: 'Panel growth has come to a virtual standstill, pricing and utilisation are stagnant and demand softness is not limited to the headline-stealing locales of Beijing and Shanghai'. He has cut his earnings forecasts for Clear Media by 37 per cent for this year. 'We would advise investors to take profit and seek re-entry below $3.'' HOLD Legend Group Merrill Lynch has maintained its 'neutral' rating on the computer maker due to the absence of a strong share price catalyst in the near term despite the recent weakness induced by Sars. Analysts Tien Yu Sieh and Min Lu project Legend next Wednesday will report a rise in earnings for the year to March of 6.4 per cent. Excluding a one-off gain from the disposal of a stake in Legend Techwise, they expect earnings to soar by 40 per cent. 'We believe the jump is achievable on the back of a substantial yearly improvement in operating margins.'