UPDATE: Raymond James Downgrades Alcatel-Lucent, Shares Fairly Valued

In a report published Thursday, Raymond James analyst Simon Leopold lowered their rating of Alcatel- Lucent

from Strong Buy to Market Perform. Leopold noted that the recent stock price reflects the restructuring expectations and continues to “hold a positive bias noting several possible catalysts.” Raymond James analysis on shares valued the current price near $4.50. Additional models describe a 9% operating margin but offers $0.25 of EPS. Leopold reported that the stock overall seems fairly valued. Raymond James described Alcatel- Lucent's sale of assets, cost cutting and higher sales as leading to an even higher stock appreciation. The analyst also noted that the possible sale of the wireless business “could degrade relationships with top customers and may require deeper consideration than some expect.” Alcatel- Lucent closed at $3.99 on Wednesday.