Jefferies analyst George Notter this morning boosted his rating on Alcatel Lucent (ALU) to Buy from Underperform, raising his rating on the shares to 3.50 Euros, from 1.50 Euros.
“While we still have our longer term concerns, we believe the business will beat investor expectations over near/intermediate-term,” he writes in a research note. “Strength in the business will be driven by increased EVDO software sales into CDMA operators. We believe the Street under-estimates the potential benefit ALU can get from this.”
Notter adds that based on his conversations with industry contacts, sales of EVDO software into the installed base of CDMA base stations will run 600-700 Euros this year, up from an estimated 375-425 million Euros in 2009. “The incremental bump comes from accelerating EVDO Rev A software sales at accounts like Verizon Wireless, Sprint, US Cellular and Leap Wireless.”
For 2010, he raised his EPS forecast to 6 Euro cents from 2 cents; for 2011, he goes to 16 cents, from a penny.
ALU this morning is up 12 cents, or 3.3%, to $3.73.
No comments:
Post a Comment