Mike Z. Woos Analysts

It looks like Nortel CEO Mike Zafirovski has been a social butterfly this week. Judging by several reports, he's been having one-on-one meetings with at least a dozen financial analysts. By all accounts, they've come away impressed. While Mike Z. has some serious street cred, it certainly doesn't hurt that his predecessors, Frank Dunn and William Owens, pale in comparison. Dunn, a bean-counter by training, openly distained public appearances, particuarly the pesky media, while Owens, an ex-U.S. Admiral, was arguably in over his head. Mike Z., however, comes across as knowledgeable, focused and a straight shooter. Now, if he could only get Nortel shares to show live some again……
In the make of Nortel's first-quarter results, several analysts have reduced their target prices. CitiGroup's Alexander Henderson lowered his 12-month price target to $2.50 from $3.20 with a "hold-speculative risk" rating. "We believe this traditional equipment company should trade at a significant discount to the average of a telecom/networking group containing more nimble, more focused next-generation vendors," he said in a report. Robert Dennison, an analyst with UBS Securities Canada Inc., cut his price target to $2.55 from $3, and reduced his price/earnings multiple on Nortel and lowered his share profit estimates for 2006 and 2007.


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