RBC Capital Markets analyst Mark Sue believes Nortel shares could hit $18 by 2011….if everything goes perfectly according to plan.
“If things line up exactly for Nortel and the company hits the high end of its operating margin targets, Nortel can potentially generate approximately US$1.50 in earnings in 2011, Mr. Sue said in a research note. “Applying a multiple of 12 to 13 times gets us to a potential stock price of US$18 vs. yesterday’s close of US$7.04.
In the gambling world, this is what you would call hedging your bets. It’s a safe way of making a bold statement but adding enough caveats to protect yourself if things don’t happen in the way you envision.
At least Sue concedes he may be bullish, adding that “operating margin recovery has been insconsistent and visibility on the top line growth rate remains limited. Furthermore, Nortel’s other income/expense items remain highly variable’.
For the time being, Sue is maintaining his “sector perform” rating and US$8 price target.
...if they execute another 10 for 1 split in a couple of years.
they way things are going in the market in general and in this sector in particular, even if NT is to be a "sector perform" it might need a reverse split to be considered a marginable security and, eventually, to maintain listing on the NYSE.
observer
Equities will fall another 20-30% from where they are before rising again. Since Nortel always trades at a discount relative to peers, Sue is off by about 40%. That would mean a stock price of about US$11 in 2011.
A Close Observer
...if pigs fly.
Cook Book
Could be 8, but rating is at 8.
You know what, NT could be 1, 2, 3...100..N. You can bet on it.
Is this kind of "prediction" useful? You be the judge.
Just cook the books already!
broadbandbill
Dedicated to Mark (Sue that is):
Poor Mark Sue for he hasn’t a clue
His analysis runs between red and blue
No insights to offer, nothing new or bold
Sticking to the same tried and untrue shit of old.
He should think green, if he could
Better yet, perhaps Nortel should
Not the type that deals with power
But the kind that lets me buy some flour.
In the end another milestone set ‘a far
That Nortel may reach but not without a scar
How about some insight into next year
If he can even see so close and clear.
Bill Baker
Bonnie Herman
Mark Sue deserve a good f*ck up the a#s for making some many wrong predictions and changing his tune once every few weeks.
NT Could Hit $18 if….
RBC Capital Markets analyst Mark Sue believes Nortel shares could hit $18 by 2011….if everything goes perfectly according to plan.
In the gambling world, this is what you would call hedging your bets. It’s a safe way of making a bold statement but adding enough caveats to protect yourself if things don’t happen in the way you envision.
At least Sue concedes he may be bullish, adding that “operating margin recovery has been insconsistent and visibility on the top line growth rate remains limited. Furthermore, Nortel’s other income/expense items remain highly variable’.
For the time being, Sue is maintaining his “sector perform” rating and US$8 price target.
Source: National Post
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