Nortel Downgraded by CitiGroup

It appears not all analysts are ready to jump on the Nortel bandwagon. Citigroup has lowered its rating on Nortel to "hold" from "buy", while reducing its target price to $3.20 from $4. The brokerage firm said the downgrade is due to Nortel’s lack of exposure to the access equipment market (something they are trying to address through a recent joint venture signed with Huawei) and slightly higher cost estimates because of delays in the transfer of manufacturing operations to Flextronics International. Citigroup also believes new CEO Mike Zafirovski may want to re-evaluate Nortel’s restructuring plans.  The Globe & Mail has a story about how Mike Z. has been bolstering his executive team over the past few months by tapping former GE colleagues.
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