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UBS Drops Target Price to $11
By Mark Evans | February 28, 2008
UBS Securities has jumped off the Nortel bandwagon, dropping its stock price target to $11 from $15 amid disappointment that the company’s business transformation is “slower than expected”.
In a research report, UBS analyst Nikos Theodosopoulos said Nortel needs to have a more narrow strategic focus:
Nortel’s “Broad based strategy likely makes the road to recovery tougher. We continue to believe Nortel needs to increasingly focus on fewer areas where it can gain a competitive edge and meaningful scale. Our preference is to see an increased focus in Metro Ethernet and Enterprise, at the expense of 4G wireless where we believe Nortel will struggle. We continue to remain on the sidelines.”
More: Check out the National Post’s Trading Desk for additional post-results coverage.
Topics: Analyst Coverage |