Citi Upgrades Alcatel-Lucent (ALU) to Buy; Sees 'Shift Plan' Taking Hold

December 11, 2013 6:56 AM EST
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Price: $3.46 --0%

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    Up: 4 | Down: 15 | New: 18
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Alcatel-Lucent (NYSE: ALU) is starting to look better and better following its recent strategy shift. Citi is becoming a fan of the company, saying investors should buy into the company with the potential for gobs of upside.

In a report out this morning, Citi upgraded Alcatel from Neutral to Buy, while raising its price target 163 percent from €1.90 up to €5. The firm likes CEO Michel Combes' Shift Plan, which calls for long-term operating margins at or above 10 percent, among other items.

Alcatel's stock price could rise at least 50 percent following the strategy change, Citi said.

Key growth markets for Alcatel include LTE wireless, core routing, and 100G optical, Citi noted.

*** Note: Citi recently changed its lead analyst on the segment.

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 $4.51 on Tuesday, with a 52 week range of $1.10 - $4.59.

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