Global Hunter Securities Maintains a 'Neutral' on Alcatel-Lucent (ALU); Recovery Pushed Out Again
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Price: $3.46 --0%
Rating Summary:
14 Buy, 6 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
14 Buy, 6 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Global Hunter Securities maintains a 'Neutral' on Alcatel-Lucent (NYSE: ALU) price target of EUR1.27.
Analyst, Stuart Jeffrey, said, "A 410bp sequential decline in gross margin and a 5% miss to revenues triggers an 80% fall in our 2012 adjusted operating profit forecast and a 27% cut to 2013. We now foresee the company barely breaking even in 2012 and rising to just 3.2% margins in 2013. Management claimed that a weaker revenue mix drove 100bps of the gross margin miss. Yet, sales as a percentage of group revenue rose for high-margin areas such as IP, Wireless and North America. We remain negative on Alcatel-Lucent’s fundamentals, but at current depressed levels see scope for significant volatility in the stock that makes it hard to sell the stock. Major positive catalysts seem unlikely before yearend at the earliest, but revenue mix dynamics could surprise."
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 $1.60 yesterday.
Analyst, Stuart Jeffrey, said, "A 410bp sequential decline in gross margin and a 5% miss to revenues triggers an 80% fall in our 2012 adjusted operating profit forecast and a 27% cut to 2013. We now foresee the company barely breaking even in 2012 and rising to just 3.2% margins in 2013. Management claimed that a weaker revenue mix drove 100bps of the gross margin miss. Yet, sales as a percentage of group revenue rose for high-margin areas such as IP, Wireless and North America. We remain negative on Alcatel-Lucent’s fundamentals, but at current depressed levels see scope for significant volatility in the stock that makes it hard to sell the stock. Major positive catalysts seem unlikely before yearend at the earliest, but revenue mix dynamics could surprise."
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 $1.60 yesterday.
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