NEW YORK-UBS Warburg has upgraded L.M Ericsson and downgraded Nortel Networks Ltd., but both end up in the Neutral column.
The firm upgraded Ericsson to Neutral from Reduce 2 and downgraded Nortel to Neutral from Buy 2.
“We view management’s more realistic revenue outlook for the year and further restructuring initiative as positive in that this provides a more credible path to acceptable levels of profitability for the company in the future,” wrote Jeffrey Schlessinger at UBS regarding Ericsson.
On Nortel, senior analyst Nikos Theodosopoulos wrote the following comment: “While we believe Nortel has done an excellent job in restructuring the company to achieve a strong gross margin of 42.9 percent in the most recent quarter, we believe the stock more than fully discounts the restructuring effort at this price.”
