Alcatel-Lucent (ALU +5%) opens higher after catching a two-notch upgrade to Overweight from...

|By:, SA News Editor

Alcatel-Lucent (ALU +5%) opens higher after catching a two-notch upgrade to Overweight from Morgan Stanley. MS is pleased with ALU's refinancing deal and restructuring efforts, and thinks competition between telecom equipment firms is cooling off, but remains worried about the margin impact of unprofitable service contracts. Investors took profits yesterday following the company's Q4 report and CEO announcement. (Q4 results: I, II) (Nokia Siemens report)