Goldman Sachs Downgrades Alcatel-Lucent (ALU) to Conviction Sell

Earlier, Goldman Sachs downgraded Alcatel-Lucent (NYSE: ALU) to Sell and added the stock to its Conviction Sell List and cut its price target from EUR 1.00 to EUR 0.60.

"Recent industry news flow (Calix, Finisar, Adtran) suggests further downside risk to consensus forecasts for Alcatel-Lucent, and higher than expected losses in 2H12 and early 2013 are likely to place elevated focus on ALU's liquidity position," the analyst said. "Given ALU's significant 2013/14/15 convertible debt maturities (€2.2 bn vs. estimated access to €2.8 bn available gross cash at end-2Q12 taking into account working capital needs) and limited equity and equity-linked re-financing options at this point, we believe the shares remain vulnerable in the event of a miss."

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 $1.08 yesterday.

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