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The Bulls Are Still Around
By Mark Evans | July 9, 2008
Even as Nortel shares slide back down again, there are analysts still keen on the company’s prospects.
In a research report, an outfit called International Independent Investment Research recently upgraded NT to a “buy” from a “hold” with a six to 24-month target of US$11.42.
IIIR analyst Jatin Predeep said he believes Nortel’s growth plans are “significantly bullish”, and that he expects healthy margins growth over the next two years even though revenue will likely increase by a modest 2.2% in 2008 and 2.8% in 2009.
Predeep said IIR is taking a “cautious approach” to Nortel because he believes management’s plans for revenue and margin growth are “overly optimistic” given the current soft business outlook.
“Nevertheless, we see significant improvement in the company compared to FY 2007. Subsequently, we maintain a positive outlook for the NYSE Nortel common stock”.
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