Scotia Capital analyst Gus Papageorgiou expects the wireless equipment market to be strong this year but wonders if Nortel can capitalize on it. Papageorgiou is particularly keen about the launch of HSDPA and EVDO, and the roll out of 3G in China. He believes the wireless equipment market is ripe because carriers are profitable and have strong balance sheets. For Nortel “what is comes down to is execution and sales ability” he writes in a research report. “On that aspects the company has been weak. The loss of the Cingular deal was, in our mind, inexcusable. The company needs to focus its efforts and deliver on its abilities in 3G”. Papageorgiou has a 2-sector perform rating on Nortel with a 12-month target price of C$4.70.
A Wireless “Bonanza” in 2006?