UBS withdrew its recommendation short-term "buy" on Alcatel-Lucent, while leaving its recommendation to 12 months "neutral" and raised its price target from 3.5 to 4.5 euros.
"Alcatel-Lucent has performed well (+98% since the beginning of the year), the telecoms equipment firm enjoying a mix of product renewal and a more positive environment in terms of investment, " said the broker.
With the continuation of several of these factors in the second quarter, combined with additional cost savings, UBS expects the continuation of strong operational performance.
"However, expectations have risen rapidly and with a ratio of enterprise value to EBITDA of eight, we believe the valuation is less convincing, " says the interim, however.
"Alcatel-Lucent has performed well (+98% since the beginning of the year), the telecoms equipment firm enjoying a mix of product renewal and a more positive environment in terms of investment, " said the broker.
With the continuation of several of these factors in the second quarter, combined with additional cost savings, UBS expects the continuation of strong operational performance.
"However, expectations have risen rapidly and with a ratio of enterprise value to EBITDA of eight, we believe the valuation is less convincing, " says the interim, however.