Zacks Investment Research downgraded shares of Alcatel-Lucent (ALU) from NEUTRAL to UNDERPERFORM on August 27, 2014, with a target price of $3.00.
Alcatel-Lucent is a leading networking and communications technology company. We are downgrading our recommendation on Alcatel-Lucent to Underperform from Neutral with a target price of $3.00. Alcatel-Lucent reported soft second-quarter results owing to weakness in the global market conditions, especially in North America. The ongoing restructuring activities are also affecting its bottom line at present. Moreover, the highly competitive nature of the telecom industry and the changing regulations and standards also remain matters of concern. However, the company has been benefiting from growth in IP and LTE technology, and its financial position is also improving owing to the effectiveness of the Shift Plan.
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