The financial guidance that came out of Nortel’s annual investor conference yesterday is the following: 13% operating margins, 43% gross margins, 10%+ revenue growth, and $1.5-billion+ in operating margin expansion by 2008. UBS Securities believes double-digit operating margins will be a challenge given the "touch competitive environment and Nortle’s absence in the consolidation wave". UBS said, however, it is "comforted by some examples of the progress the company is making towards its profitability goals and by the optimism and confidence exuded by the management team". UBS has a neutral rating on Nortel with a price target of $2.35. For more, check out the Globe and Mail, which has a story on Nortel’s strategy to boost margins. Tags: Nortel Networks, UBS
Nortel’s Ambitious Financial Targets
The financial guidance that came out of Nortel’s annual investor conference yesterday is the following: 13% operating margins, 43% gross margins, 10%+ revenue growth, and $1.5-billion+ in operating margin expansion by 2008. UBS Securities believes double-digit operating margins will be a challenge given the "touch competitive environment and Nortle’s absence in the consolidation wave". UBS said, however, it is "comforted by some examples of the progress the company is making towards its profitability goals and by the optimism and confidence exuded by the management team". UBS has a neutral rating on Nortel with a price target of $2.35. For more, check out the Globe and Mail, which has a story on Nortel’s strategy to boost margins. Tags: Nortel Networks, UBS