Nortel Shares Fall On Goldman Downgrade

| About: Nortel Networks (NT)

Shares of Nortel Networks Corp. (NT) closed lower 3.33%, or US$0.80 to US$23.25 in trading Friday, after Goldman Sachs downgraded the company to a "sell" from "neutral."

Analyst Brantley Thompson said he thinks Nortel shares "fully discount a successful execution on the cost restructuring from the strong leadership team," while the shares will face selling pressure from the US$1.9-billion in stock that will be distributed in the next 12 months as a result of a shareholder lawsuit.

He maintained his US$24 price target, but warned that the shares could fall further.

NT 1-yr chart:

NT 1-yr chart

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