Lehman Keeps Market Perform on Lucent
Lehamn brothers maintains its market perform rating on Lucent Technology (LU ) and believes a fundamental bottom may be beginning to form for the stock.
Analyst Steven Levy says the worst of year-over-year declines are behind Lucent, even if its lack of growth is still uncertain. He says the risk of a liquidity crisis has diminished and he will continue to look for signs of sustainability of revenues, increasing gross profitability and futher improvements on balance sheet before upgrading.
He raised his $21.4 billion calendar 2001 revenue estimate to $25.7 billion and raised his $24.8 billion calendar 2002 estimate to $29.1 billion.
Levy maintains his market perform rating as the overall weakness of telecom industry and the relative fragility of the company itself makes it difficult for him to change his stance at this time.