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.”
Sue Down on Alcatel-Lucent Too
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.
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.
Hat tip: Barron’s Tech Trader Daily.
Technorati Tags: alcatel-lucent