BUY Legend Group Merrill Lynch has upgraded its rating for the computer maker from 'neutral' to 'buy'. Analysts Tien Yu Sieh and Min Lu said valuations, business fundamentals, operating margins, overall information technology demand in China and prospects for the handset business were factors for the improved outlook. They have raised their revenue estimates but kept the earnings expectation unchanged as they forecast new businesses such as handsets and IT services to be less profitable in the near to medium term. Earnings are expected to rise 12.8 per cent to 15 cents per share next year. Merrill has a target of $3 for the counter. HOLD Beijing Datang Power Generation and Huaneng Power International Standard & Poor's Equity Research has downgraded its recommendations on the two power producers from 'accumulate' to 'hold'. It said their share prices had overshot their fair values and potential disappointment from the absence of any tariff increase or even a limited rise could send prices down. While the power shortage in China could trigger a tariff rise, the research unit did not believe many power plants would raise tariffs on fears that any adjustments to end-user tariffs would be negative to business. HOLD BOC Hong Kong (Holdings) UBS Warburg has downgraded its recommendation on the bank from 'buy' to 'neutral', on the likely drop in confidence by the investment community stemming from the alleged problem loans made to Shanghai Land Holdings. Analyst Tracy Yu said investors might not just be concerned about the potential loss from the $800 million reportedly outstanding from Shanghai Land but also about the bank's credibility. She lowered the target for the stock from $9.80 to $7.50.