UPDATE: Bank of America Upgrades Alcatel-Lucent on Bold Restructuring
In a report published Thursday, Bank of America analyst Didier Scemama upgraded the rating on Alcatel-Lucent (NYSE: ALU) from Underperform to Buy, and raised the price target from $0.98 to $3.50.
In the report, Bank of America noted, “We believe that ALU's new management team has a convincing restructuring plan in place aiming to reduced fixed costs by Eur 1bn by 2015. The company intends to refocus its portfolio and R&D budget away from legacy technology into IP networking technologies where the company is a world leader. Ultimately we expect the group to deliver 6.4% EBIT margins in 2015, assuming more conservative margin targets than the company.”
Alcatel-Lucent closed on Wednesday at $1.93.
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