Category Archives: Analyst Coverage

Zacks Downgrades NT

By Mark Evans | Published: December 5, 2008

In downgrading Nortel to a “sell”, Zacks Investment Research didn’t pull any punches. Its decision was based on the lack of “any near-term growth catalyst”, as well as “the company’s debt level, disappointing financial expectations, and general economic weakness that may impede near-term improvements”. “Nortel…is facing severe business challenges as a result of the global [...]

Posted in Analyst Coverage | 3 Comments

What Was Mark Sue Thinking?

By Mark Evans | Published: November 21, 2008

Putting aside the performance of Nortel’s stock, I’ve been thinking recently about Mark Sue’s decision to slash his target price to zero. In retrospect, it strikes me as an irresponsible decision because it suggests that Nortel as an operating entity is doomed with no value. As much as Nortel is troubled and has its financial [...]

Posted in Analyst Coverage | 35 Comments

RIchards on NT

By Mark Evans | Published: November 16, 2008

Canadian Press has a story on Nortel featuring some attention-grabbing quotes from Paradigm Capital analyst Barry Richards, who has been the most bullish analyst on NT this year. On why he has a $5 target price, and RBC Capital Markets’ Mark Sue now has a target price of zero: “I’m of the view that either [...]

Also posted in Financials | 19 Comments

Doomsday Scenarios Emerging

By Mark Evans | Published: November 14, 2008

Talk about the rats fleeing the sinking ship, analysts are wasting no time distancing themselves from Nortel. Yesterday, RBC Capital Markets’ analyst Mark Sue dropped his target price to zero, and now National Bank’s Kris Thompson has issued a research note suggesting that Nortel shareholders could be doomed because bondholders will have priority in the [...]

Posted in Analyst Coverage | 127 Comments

Mark Sue Cuts Price Target to Zero

By Mark Evans | Published: November 13, 2008

I’ve never seen this before: an analyst cutting his target price to zero. But that’s what RBC Capital Markets’ Mark Sue has done with Nortel, going from $1.50 to zero while maintaining his “underperform” rating. Sue believes there is a good possibility Nortel will file for bankruptcy protection given its cash burn, terrible capital markets [...]

Posted in Analyst Coverage | 37 Comments

Robert Baird Cuts Target Price

By Mark Evans | Published: November 11, 2008

Robert W. Baird analyst Ken Muth has reduced its target price on NT to $1 from $3, while maintaining its “neutral” rating. In a research note, RB said Nortel will likely to burn through $813 million of cash in 2009, while reducing its EPS estimates for FY08 and FY09 from -$0.06 to -$0.25 and from [...]

Posted in Analyst Coverage | 6 Comments