Market Overview

Morgan Stanley Resumes Coverage on Alcatal Lucent

Share:
Related ALU
Why Oddo Upgraded Nokia
Barclays Sees Combined Nokia-Alcatel As A 'Stronger Force' In Global Networking; Upgrades To Overweight
Nokia Starts A Feeding Frenzy (Seeking Alpha)

In a report published Thursday, Morgan Stanley analyst Francois Meunier resumed coverage on Alcatal Lucent SA (NYSE: ALU) at Overweight, with a €3.70 PT.

According to the report, a new €1bn net cash position alleviates balance sheet concerns. While shares no longer remain in value territory at 0.85x EV/Sales, it is expected market share momentum to continue in wireless and routers, and potential execution on the disposal portion of the shift plan as a catalyst.

“The markets for telecom infrastructure now appear more benign in Europe, where Alcatel has a strong presence in fixed,” the report said “In addition, Alcatel has won new contracts with Sprint, China Mobile and China Telecom. The company's expansion into Routing represents further opportunity for market share, with Alcatel now the main challenger to Cisco and Juniper in the core router and datacenter market.”

Some risks to the price target include potential inertia on restructuring US capex recover might be temporary and industry dynamics on pricing remain competitive.

ALU closed Wednesday at $46.1 with shares trading up at 1.54 percent.

Latest Ratings for ALU

DateFirmActionFromTo
Apr 2015BernsteinUpgradesMarket PerformOutperform
Apr 2015CitigroupDowngradesBuyNeutral
Apr 2015Credit SuisseDowngradesOutperformNeutral

View More Analyst Ratings for ALU
View the Latest Analyst Ratings

Posted-In: Francois Meunier Morgan StanleyAnalyst Color Initiation Analyst Ratings

 

Related Articles (ALU)

Around the Web, We're Loving...