Nomura Securities Maintains a 'Neutral' on Alcatel-Lucent (ALU); Shuffle, Then Reshuffle

September 10, 2012 4:59 PM EDT Send to a Friend
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Price: $2.51 -2.33%

Rating Summary:
    12 Buy, 10 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 28 | New: 14
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Nomura Securities maintains a 'Neutral' on Alcatel-Lucent (NYSE: ALU) price target of EUR0.86.

Analyst, Stuart Jeffrey, said, "In the absence of a major revenue decline, ALU's incremental restructuring announcement is sufficient to drive adjusted operating margins to nearly 5%, we believe, but not before 2014. Meanwhile, the company is likely to continue to run down cash. With little apparent scope for material asset sales and material upside potential, in our view, ALU's current EUR 140m of annualized patent income, we believe that liquidity is reliant on ALU being able to issue new debt in order to pay off upcoming maturities."

"While short-term seasonality could provide some short-term relief, H1 2013 seems likely to highlight underlying weaknesses again. Unless end markets enter a cyclical upswing, we see no compelling reason to accumulate the stock..."

For an analyst ratings summary and ratings history on Alcatel-Lucent click here. For more ratings news on Alcatel-Lucent click here.

Shares of Alcatel-Lucent closed at $1.15 yesterday.


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