Nomura Securities Maintains a 'Neutral' on Alcatel-Lucent (ALU); Cutting Estimates & PT on Weak EU and Opex Trends

Nomura Securities maintains a 'Neutral' on Alcatel-Lucent (NYSE: ALU) price target lowered from EUR1.70 to EUR1.65.

Analyst, Stuart Jeffrey, said, "We cut our Q1 revenue estimates to €3.24bn vs. consensus (FactSet) at €3.35bn on weaker-than-expected trends in European wireline in particular...Our recent small-cell sector report showed that, while Alcatel-Lucent is well positioned in this market, the limited size of this market on a three-year view makes it unlikely to be a material driver of the company’s revenues. With spending targets in China disappointing, Alcatel-Lucent remains reliant, in our view, on improved U.S. trends later in the year."

Nomura lower FY12 EPS estimate from $0.07 to $0.05, revs from $15.250 bln to $15.002 bln. FY13 lowered from $0.20 to $0.16, revs from $15.879 bln to $15.53 bln.

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 $2.12 yesterday.

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