RBS continues to recommend "hold " and its target price of three euros on Alcatel-Lucent, after publication by the telecoms equipment maker's results for first quarter.
Alcatel-Lucent posted revenues of 3.74 billion euros, in line with analysts' expectations: the networks division has exceeded the consensus, but sales of applications and services divisions were disappointing.
The broker noted however that the gross margin of 36.2%, adjusted operating margin of 0.3% and Adjusted EPS of euro cent, outperformed the market assumptions, which were 33.8%, -1.2% and -3 cents respectively.
Stressing that the management reiterated its target of operating margin "above 5%" for 2011, RBS expects an increase in the consensus EPS for the year by 20 cents to between 22 and 26 cents.
Alcatel-Lucent posted revenues of 3.74 billion euros, in line with analysts' expectations: the networks division has exceeded the consensus, but sales of applications and services divisions were disappointing.
The broker noted however that the gross margin of 36.2%, adjusted operating margin of 0.3% and Adjusted EPS of euro cent, outperformed the market assumptions, which were 33.8%, -1.2% and -3 cents respectively.
Stressing that the management reiterated its target of operating margin "above 5%" for 2011, RBS expects an increase in the consensus EPS for the year by 20 cents to between 22 and 26 cents.