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Downgrade Alert for Alcatel-Lucent (ALU)

By James Quinn

Alcatel-Lucent (NYSE:ALU) was downgraded from Neutral to Underperform at BofA/Merrill today. The stock closed yesterday at $3.49 on volume of 7.5 million shares, above average daily volume of 7.1 million.

Alcatel-Lucent manufactures telecommunications equipment, and offers telecommunications services. The Company's telecommunications equipment and services enable its customers to send or receive virtually any type of voice or data transmission. Alcatel-Lucent designs and builds public and private networks, communications systems and software, and data networking systems.

In the past 52 weeks, shares of Alcatel-Lucent have traded between a low of $2.28 and a high of $4.62 and closed yesterday at $3.49, which is 53% above that low price. The 200-day and 50-day moving averages have moved 0.27% lower and 2.75% higher over the past week, respectively.

Potential upside of 11.9% exists for Alcatel-Lucent, based on a current level of $3.49 and analysts' average consensus price target of $3.91. Alcatel-Lucent shares have support at the 200-day moving average (MA) of $3.47 and additional support at the 50-day MA of $3.36.

SmarTrend recommended that subscribers consider buying shares of Alcatel-Lucent on October 30th, 2014 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $2.93. Since that recommendation, shares of Alcatel-Lucent have risen 19.3%. We continue to monitor ALU for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: analyst upgrades/downgrades Alcatel-Lucent

Ticker(s): ALU