Deutsche Bank Reiterates a 'Buy' on Alcatel-Lucent (ALU); Risk Overstated, Momentum to Improve

Deutsche Bank reiterates a 'Buy' on Alcatel-Lucent (NYSE: ALU) price target of $2.00.

Analyst, Kai Korschelt, said, "We believe debt & equity markets are discounting an overly harsh financial distress scenario for ALU, with our stress test indicating sufficient liquidity to service upcoming maturities and still retain a ~E3.5bn gross cash buffer. With a likely Q& H2 revenue and margin recovery plus potential router & IP monetization catalysts, we believe momentum is set to improve and reiterate our rating."

Deutsche Bank cuts FY12 EPS estimate from EUR0.08 to EUR 0.06 and raises FY13 from EUR0.13 to EUR0.16.

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 $1.50 yesterday.

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