Deutsche Bank keeps the buy rating on Nortel Networks (NT).
Analyst George Notter says a disconcerting part of last night's that Nortel will delay filing its 2003 report and restate its financials, is that Nortel didn't provide any detail around the potential size of the current restatement. Last time Nortel restated, in October, the company provided details.
Given that the current restatement appears to be evaluating the same "accrual and provisions" as the last restatement, Notter suspects the potential size of the current restatement will also be small -- but this is purely a guess on his part, he says. Notter thinks at bare minimum, the situation rattles one's confidence in Nortel's accounting processes and systems.