Ericsson, Alcatel-Lucent lifted to buy at GoldmanExplore related topics
Ericsson(Lm)Tel LM Ericsson Telephone Co Alcatel-Lucent Story Quotes Comments Screener Alert Email Print By Barbara Kollmeyer S
-- Swedish mobile equipent group Ericsson /quotes/comstock/22u!eric-a (SE:ERICA 69.00, -4.50, -6.12%) /quotes/comstock/15*!eric/quotes/nls/eric (ERIC 10.67, +0.30, +2.89%) was upgraded to buy from neutral on Friday at Goldman Sachs, which said the company is likely to continue to keep taking market share, helped by its 70% sales exposure to emerging markets. Ericsson's dominant profession services business should keep growth strong at attractive margins, reducing earnings volatility, while high operational leverage on a reduced cost base should drive margins back to mid-teens, said Goldman. The investment bank also upgraded Alcatel-Lucent /quotes/comstock/13*!alu/quotes/nls/alu (ALU 4.51, 0.00, 0.00%) /quotes/comstock/24s!e:alu (FR:ALU 3.16, +0.14, +4.78%) to buy from neutral, saying it remains attractively valued. In looking at telecom equipment makers overall, Goldman said weak third-quarter results mark the bottom in the global capex cycle.