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Sue Down on Alcatel-Lucent Too
By Mark Evans | September 8, 2008
If you thought RBC Capital Markets’ analyst Mark Sue was just down on Nortel, he’s bearish on Alcatel-Lucent as well. He reduced his stock price target to $6 from $7.
“The demand environment for traditional telecom gear seems to be taking a downtick and we’re decreasing our estimates on Alcatel Lucent, And despite the depressed valuation - 0.5x our CY09 EV/Sales - we would look for values elsewhere…With our checks displaying elongating sales cycles, we’re reducing our estimates and price target.”
Sue adds that while some people are encouraged about Alcatel-Lucent’s new management team, he is concerned about the company’s ability to execute.
“Despite some optimism from the newly named management team, we remain concerned about Alcatel-Lucent’s ability to execute.”
Hat tip: Barron’s Tech Trader Daily.
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Topics: Analyst Coverage |