Sanford C. Bernstein & Co. says have 'carefully' raised its opinion on Alcatel-Lucent from "underperform" to "performance line" after the announcement of the arrival of Michel Combes as Director General. The target price rises from 0.6 to 1.1 euro.
The broker believes that the new boss of the group may decide, upon his arrival on April 1, to break with the recovery plan was put in place by getting rid of unprofitable activities (fiber optic wired) in focusing on historical activities and adjusting wireless high cost base.
Faced with such a scenario, the action could be worth up to three euros, says Bernstein.
In summary, the analyst believes that Michel Combes could end with the single thought within the group, questioning the strategic direction of the equipment and take the painful steps that are necessary to ensure the future of the business.
Like I said....Combes needs to abandon the current plan, which seems designed to tread water, and get a lot more aggressive....that COMBES NEEDS TO GROW A PAIR.
Hope that Bernstein is right. What welcome news that would be if he showed up at the 1QCC and did what really needed to be done.....lop off another 10,000, and sell assets SOONER rather than later.....etc.
to finally GET AHEAD OF THE PROFIT CURVE....rather than always trying to play catch-up.
Translation " We had a .60 euro target (.78 cents USD) and we watched it get crushed when the stock ran to almost 1.80. We've now seen the stock pull back and figure we aren't going to get caught in that mess anymore and so we hereby RAISE our rating. And hope to GOD no one notices what our target was before this".
How'd i do?
Sentiment: Strong Buy
Good. But, a range from 0.6 to 1.1 euros is too much. Market makers do not trust in ALU management. This move from Bernstein is based in a scenario which Mr. Combes will cut with Ben's strategy. Let's hope, Mr. Combes will cut deep. Otherwise, with or without government of France, ALU will BK.