Deutsche Bank Downgrades Alcatel-Lucent (ALU) to Hold; Negative Pre-Announcement, Uncertainty Rising

Deutsche Bank downgraded Alcatel-Lucent (NYSE: ALU) from Buy to Hold.

Deutsche analyst said, "The company pre-released on Q2. Adj EBIT is guided to -E40m vs. DB and consensus +E58m. The company is saying they will not achieve their previous operating margin guidance of 3.9%, which has been expected after poor Q1 results and a ‘disclaimer’ on their FY margin guidance back then...However, we believe current mix/margin pressure coupled with further revenue uncertainty from Europe means that H2 margin improvement will not be enough to offset the weak H1."

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 $1.37 yesterday.

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