Nomura Securities Maintains a 'Neutral' on Alcatel-Lucent (ALU); Ready to Unveil Breakthrough Innovation

Nomura Securities maintains a 'Neutral' on Alcatel-Lucent (NYSE: ALU) price target of EUR1.27.

Analyst, Stuart Jeffrey, said, "Alcatel-Lucent has announced its intention to “unveil a major breakthrough innovation in core networking” on May 22. We expect this to herald the company’s launch of a dedicated core router. Our analysis shows that a 10% core routing share would drive a 6% increase in our operating income forecast for 2014 (all else being equal) and a 20% share 14% upside to estimates. While at Cisco (Nasdaq: CSCO), risks are largely reflected in estimates, at JNPR, we estimate 2% to 5% downside risk. A 4-6 quarter sales cycle suggests limited upside potential to ALU’s 2012 or 2013 estimates. Maintain Buy on CSCO; Neutral on ALU and Juniper (Nasdaq: JNPR)."

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 $1.44 yesterday.

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